TEXT - Fitch comments on U.S. bank TruPS CDOs

Mon Jan 28, 2013 12:14pm EST

Jan 28 - According to latest index results from Fitch Ratings, combined
defaults and deferrals for U.S. bank TruPS CDOs has further decreased to 30.2%
at the end of the fourth quarter of 2012 (4Q'12). 

 

Two deferring bank issuers totaling $28.5 million of collateral in three CDOs 
defaulted on their TruPS CDOs in 4Q'12, fewer than the five banks that defaulted
in 3Q'12.

Furthermore, five banks representing $69.7 million of collateral in 11 CDOs 
began deferring interest on their TruPS in 4Q'12, comparable to the amount seen 
in 3Q'12. Three were re-deferrals from banks that had previously cured. 

Moreover, 14 banks representing $270.8 million of collateral in 28 CDOs resumed 
interest payments and repaid cumulative deferred interest on their TruPS. The 
number of cured banks in 4Q'12 was similar to that of 3Q'12, however, the 
notional amount was considerably lower than the previous quarter's $492.7 
million.
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