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