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FUND AMERICA INVESTORS TRUST II $135,000,000 COLLATERALIZED MORTGAGE OBLIGATIONS, SERIES 1993-3 RATED BY DUFF & PHELPS

 NEW YORK, Oct. 29 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has rated the following classes of Collateralized Mortgage Obligations, Series 1993-3 issued by Fund America Investors Trust II and underwritten by Daiwa Securities America:
 Class Amount Rate D&P Rating
 A $135,000,000 1-Month LIBOR +1.5 pct. AAA
 Class A is entitled to monthly interest payments on the mortgage collateral described below less fees of the trust. The payments are allocated first to Class A to pay interest on the class, then generally to pay deferred interest and interest on deferred interest, and then to pay down principal on the class. Prior to February 2004, if the outstanding principal amount of the class reaches $60,000,000, deferred interest will only be paid to the extent it exceeds $15,000,000. Class A is also entitled to the proceeds of the treasury STRIPS described below when they mature in February 2004 to pay class principal and deferred interest outstanding at that time. Holders of the trust certificates may terminate the trust on or after October 25,1998, in which case the Class A bondholders must be paid 102 percent of the sum of their outstanding principal amount and any deferred interest, plus interest on any deferred interest.
 The rating of the bonds reflects D&P's opinion that the Class A bondholders will receive at least $135,000,000 of payments by the Class A maturity date . The rating does not address either the right of bondholders to receive payments on the bonds in excess of an amount equal to the aggregate principal amount of the bonds or whether bondholders will suffer lower than anticipated yields. In addition, the ratings do not address whether the payments on the bonds will take the form of either principal or interest.
 The bonds are secured by mortgage collateral consisting of 17 different classes of REMIC and CMO securities issued by the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Association (Freddie Mac) and various private issues using first lien mortgage loans and home equity and home improvement loans as collateral for their offerings, as well as $101,000,000 face amount of Treasury Strips with a payment date of February 15, 2004. The securities generally consist of variations of principal-only, interest-only, and, for the private issues, residual interest securities, which may or may not be in certificated form. The bonds were issued pursuant to an indenture between Fund America Investors Trust II as issuer and State Street Bank and Trust, as trustee.
 The analysis for the ratings primarily focused on prepayments of the mortgage pools underlying the REMIC securities and the subsequent effect on bond cash flows.
 -0- 10/29/93
 /CONTACT: Henry W. Hayssen of Duff & Phelps Credit Rating Co., 212-908-0209/


CO: Fund America Investors Trust II ST: IN: FIN SU: RTG

CK -- NY109 -- 8787 10/29/93 19:40 EDT
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Date:Oct 29, 1993
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