Conseco Finance $289.5MM HIL Ctfs Ser 2000-E Rated By Fitch.Business Editors NEW YORK--(BUSINESS WIRE)--Sept. 28, 2000 Conseco Finance Corp.'s (Conseco) $255.8 million home improvement loan certificates, series 2000- E, class A-1 through A-5 certificates are rated 'AAA' by Fitch fitch: see polecat. . The $18.6 million class M-1 certificates are rated 'AA', the $7.8 million class M-2 `A', and the $7.4 million class B-1 `BBB' by Fitch. Credit enhancement Credit Enhancement A method whereby a company attempts to improve its debt or credit worthiness. Notes: Credit enhancements take many different forms. An example of a credit enhancement would be conversion rights added on to a debt instrument in order to lower the issuing for the `AAA' rated class A certificates reflects the credit support provided by the 14.75% subordinate classes M-1, M-2, B-1, and B-2. Support for `AA' rated class M-1 is provided by the 8.55% classes M-2, B-1, and B-2. Support for the `A' rated class M-2 is provided by the 5.95% class B-1 and B-2. Support for the `BBB' rated B-1 is provided by the 3.5% class B-2 certificates. All of the certificates benefit from monthly excess cash and 2.5% future overcollateralization Overcollateralization The posting of more collateral than is needed to obtain financing. Notes: This is often done in order to get a better debt rating from a credit rating agency. See also: Collateral, Overcapitalization to absorb losses. The class B-2 certificates are not being offered at this time. All of the certificates are collateralized initially by a pool of fixed-rate, closed-end home improvement loans creating a first or junior lien lien, claim or charge held by one party, on property owned by a second party, as security for payment of some debt, obligation, or duty owed by that second party. on one- to four- family properties. Fitch's analysis is based on initial home improvement loans totaling $285.4 million, which represents approximately 95.13% of the total $300 million home improvement loans. Additional home improvement loans will be purchased up to 90 days after the closing date. Fitch monitors the characteristics of the additional collateral to ensure conformity to the representations made by Conseco. The average balance of the initial home improvement loans is $23,408.28; the weighted average coupon Weighted average Coupon The weighted average of the gross interest rates of mortgages underlying a pool as of the pool issue date; the balance of each mortgage is used as the weighting factor. is 12.69%; the weighted average maximum coupon is 21.99%; the weighted average remaining term is 230 months. Geographically, the largest concentration of the loans is located in California (14.76%). Interest is paid first to the class A certificates followed by interest to the class M-1, M-2, B-1, and B-2 certificates. Next, principal is distributed sequentially to the class A, M-1, M-2, B-1 and B-2 certificates. Payments of principal will not be distributed to class M-1, M-2, B-1, or B-2 unless certain delinquency delinquency Criminal behaviour carried out by a juvenile. Young males make up the bulk of the delinquent population (about 80% in the U.S.) in all countries in which the behaviour is reported. and loss tests have been satisfied. The home improvement loans were originated or acquired by Conseco. U.S. Bank Trust, N.A. will serve as trustee. A real estate mortgage investment conduit Real Estate Mortgage Investment Conduit (REMIC) A pass-through tax entity that can hold mortgages secured by any type of real property and can issue multiple classes of ownership interests to investors in the form of pass-through certificates, bonds, or other legal forms. election will be made for federal income tax purposes. Fitch is an international rating agency that provides global capital market investors with the highest quality ratings and research. Dual headquartered in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and London with a major office in Chicago, Fitch rates entities in 75 countries and has some 1,100 employees in more than 40 local offices worldwide. The agency, which is a combination of Fitch IBCA IBCA International Braille Chess Association IBCA Institute of Burial and Cremation Administration IBCA Integrated Business Communications Alliance IBCA International Barbeque Cookers Association IBCA Department of Interior Board of Contract Appeals and Duff & Phelps Credit Rating Co., provides ratings for Financial Institutions, Insurance, Corporates, Structured Finance, Sovereigns and Public Finance Markets worldwide. |
|
Printer friendly
Cite/link
Email
Feedback
Reader Opinion