Downgraded banks struggle to find replacement swap counterparties on ABS deals


Downgraded banks are struggling to find replacement swap counterparties for hundreds of residential mortgage-backed securities (RMBS) and asset-backed securities (ABS) transactions – something that could lead to the structured finance trades themselves being downgraded.

According to data released by Moody's Investors Service last week, 165 RMBS and 144 ABS transactions have breached second-level triggers due to downgrades of their swap counterparties. In most cases, these are Spanish and Italian

To continue reading...

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: