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FITCH UPDATES ALL VOLATILITY RATINGS ON $250 BILLION OF CMOS -- FITCH FINANCIAL WIRE --

 NEW YORK, May 10 /PRNewswire/ -- Fitch updates V-Ratings on 11,091 currently rated CMO tranches with an outstanding aggregate balance of $250 billion.
 Approximately 13 percent of the ratings moved into less volatile categories, mostly due to shortened duration because of high prepayments in a quarter that saw interest rates sink to 20-year lows. Approximately 1 percent of the ratings became more volatile, primarily because accelerated prepayments caused some PACs to break their prepayment bands (their protection against prepayments) and pay down like straight pay bonds.
 V-Ratings are a key measure of volatility, or market risk, of collateralized mortgage obligations. There's no charge to access Fitch V-Ratings on any vendor services.
 Fitch has V-Ratings on virtually all agency REMICS issued in 1990, 1991 and the first quarter of 1992, and all new offerings by Kidder, Peabody & Co. V-Ratings offer a common, independent framework for evaluating CMO performance under 12 divergent interest rate scenarios. The ratings, scaled V1 through V5, provide a relative measure of each tranche's total return, price, and cash flow variability given changing interest rates. Tranches rated V1 and V2 have low volatility, V3 is moderate, V4 is volatile, and V5 most volatile. Fitch V-Ratings are available on Bloomberg by typing "FVR" and "GO", on Telerate beginning on page 26300, and on Knight-Ridder beginning on page 5300.
 -0- 5/10/93
 /CONTACT: Richard Scholz, 212-908-0616, or Glenn Costello, 212-908-0633, both of Fitch/


CO: ST: IN: SU: RTG

KD -- NY111 -- 6721 05/10/93 17:56 EDT
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Publication:PR Newswire
Date:May 10, 1993
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