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BEAR STEARNS SEC INVS TRST 1993-2 $379 MIL CLS F-1&2 'AAA' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, June 30 /PRNewswire/ -- Bear Stearns Secured Investors Trust 1993-2 $379 million collateralized mortgage obligations, series 1993-2 classes F-1 and F-2 are rated 'AAA' by Fitch.
 The 'AAA' rating indicates Fitch's confidence that class F-1 will receive at least $155 million in cash by March 25, 2023 and that class F-2 will receive at least $224 million by March 25, 2023. The rating does not address the principal or interest composition of payments to F- 1 and F-2 bonds; only that the above amounts will be distributed by the respective dates above.
 The bonds are supported by the aggregate cash flow from a portfolio of derivative mortgage-backed securities, which will be deposited in a trust. The portfolio is composed of FNMA and FHLMC agency securities. The aggregate outstanding principal amount of these bonds is expected to be approximately $288,332,184. The 'AAA' rating is based on the results of Fitch's cash flow analysis described below and reflects the high ratio (76.08 percent) of underlying aggregate principal to the size of the bonds.
 The ratings were determined by analyzing the aggregate cash flow from the securities in the trust using a set of 13 interest rate movement scenarios. The scenarios were developed as part of Fitch's CMO Volatility Rating product (V-Ratings), which measures relative interest rate and prepayment risk of CMO tranches. The cash flow from each scenario indicates how the portfolio will perform in that particular interest rate and prepayment environment. The V-Rating analysis examines the certainty of cash flow regardless of its designation as principal or interest. Since actual interest rates and prepayment speeds rarely follow a single scenario, Fitch chose a wide range of scenarios to capture the varying degrees of risk inherent in the underlying securities. The Fitch scenarios range from moderate interest rate movements of 50 basis points (bps) to severe stress scenarios such as sustained instantaneous 300-bp movements and whipsaw scenarios that fluctuate up and down 200 bps.
 To determine a cash flow level sufficient to warrant a 'AAA' rating, Fitch performed a worst-case analysis of the 13 scenarios. Fitch determined that the rated amount of $379 million could be paid under any one of the scenarios. The F-1 and F-2 bonds maintained sufficient cash flow levels under extremely stressful interest rate and prepayment assumptions, such as high levels for LIBOR and high mortgage prepayments.
 The securities underlying the trust are made up entirely of agency- backed CMO real estate mortgage investment conduit securities. These securities were originally issued by FHLMC and FNMA and as such are rated 'AAA'. The types of classes that make up the portfolio are: stripped principal-only securities, planned amortization class (PAC) principal-only securities with and without effective prepayment bands, PAC IOettes (high coupon, small principal) without effective bands and inverse floating rate securities.
 The market risk of these securities, and their effects on the yield of the bonds, depend on the rate of prepayment on the underlying mortgages and the level of LIBOR. Varying combinations of these factors will have differing effects on the performance of the securities; the most adverse being high rate of mortgage prepayment combined with high LIBOR rates. Fitch's CMO Volatility analysis indicates that F-1 and F-2 bonds are sensitive to these factors. However, the V-Rating stress test indicates sufficient stability to meet the rated obligations.
 -0- 6/30/93
 /CONTACT: Jim Nadler, 212-908-0538, or Glenn Costello, 212-908-0633, both of Fitch/
 (BSC)


CO: Bear Stearns ST: New York IN: FIN SU: RTG

TM -- NY091 -- 7427 06/30/93 18:35 EDT
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Date:Jun 30, 1993
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