Bangkok--1 Sep--Moody's Investors
Moody's Investors Service says that the RMBS markets in Korea, Hong Kong and Taiwan largely stabilized in the second quarter of 2009 against the backdrop of the ongoing global financial crisis.
At the same time, Moody's says -- according to its analysis of loans with auctioned properties -- high recovery levels were evident for the Korean market.
Moody's latest analysis of the three markets appeared in its just-published 2Q2009 report, entitled "Asia ex-Japan RMBS 2Q2009 Performance Review."
"In the Korean market, the deteriorating trend in the quarter improved a bit and delinquency levels are still very low," says Kan Leung, a Moody's Analyst and one of the report's authors.
"In June 2009, the over 60 days delinquency -- as a percentage of the outstanding pool balance -- was 0.45% for Moody's rated Korean RMBS transactions, up a bit from 0.41% in April," says Leung. "In addition, in our analysis on loans sent to auction, recovery rates from auctioned properties were very high with an average of over 99%."
Meanwhile, in Hong Kong, the performance of mortgage loans in RMBS transactions has not been significantly affected by the financial crisis as they were seasoned and have accumulated sufficient equity.
"And in Taiwan, Hsinchu International Mortgage Loan 1 Limited (Hsinchu 1), whose LTV ratio is lower than Hsinchu International Mortgage Loan 2 Limited (Hsinchu 2), continued to outperform Hsinchu 2 with its over 60 days delinquency -- as a percentage of outstanding pool balance -- almost one-third of that of Hsinchu 2," says Leung.
"Despite continued deterioration, there is no imminent rating action on Hsinchu 2 as its pool has amortized more than half, and with a sequential pay structure, available credit enhancement had built up to more than 40% at end-June 2009, thereby providing sufficient protection for the rated notes," adds Leung.
"This report is the second of Moody's quarterly series on RMBS markets in the region and they represent Moody's efforts to provide more information and transparency to this sector," says Leung. "It also includes commentary on house prices and economic trends."
The report is now available at www.moodys.com.
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Hong Kong
Kan Leung
Associate Analyst
Structured Finance Group
Moody's Asia Pacific Ltd.
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Sydney
Andrew Zanchetta
Managing Director
Structured Finance Group
Moody's Investors Service Pty Ltd
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