Bangkok--1 Jun--Moody's
Moody's Investors Service says in a new report that the performance of mortgage loans in outstanding RMBS originated in Korea, Hong Kong, and Taiwan was stable in 1Q2011 with no downward pressure evident on ratings in any of the three markets.
For Korea, the gross default ratio was less than 0.4% of the outstanding pool balance for all transactions, as of end-March 2011.
For Hong Kong, the ratio of 30-119 days past due -- as a percentage of the outstanding pool balance -- was negligible at less than 0.1%.
In the case of Taiwan's two RMBS deals, the one with higher loan-to-value(LTV) loans had a higher gross default ratio of around 5%, while the one with lower LTV loans showed a better performance of 2%.
"The mortgage loans in Taiwan displayed the highest gross default ratio of the three markets. At the same time, the subordination in the two Taiwanese transactions is abundant at around 65% as a result of their sequential payment structures. Hence, we see no rating implications," says Kan Leung, a Moody's Analyst and author of the report.
The report is entitled "Asia ex-Japan RMBS 1Q2011 Performance Review." It is part of Moody's efforts to provide more information and transparency to the market, and is available at www.moodys.com.