TEXT-S&P Publishes Report On Master Trust Structures In Aust., NZ
(The following was released by the rating agency)
MELBOURNE (Standard & Poor's) Sept. 5, 2012--Standard & Poor's Ratings Services today published a commentary on master trust structures and their use by mortgage lenders in Australia and New Zealand. Lenders and investors have shown increased interest in master trust structures, which offer a broader range of liability profiles compared with traditional residential mortgage-backed securities (RMBS).
The commentary highlights some of the key features that would give rise to credit considerations that may not be common in RMBS, including:
-- Varying liability profile and pro-rata loss allocation;
-- Parameters and triggers to maintain credit quality; and
-- A more complex cash-flow mechanism due to more complex liability profiles.
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