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CAPSTEAD SEC. CORP. IV $200 MIL. CMO SER. 1992-VII 'AAA' BY FITCH --FITCH FINANCIAL WIRE (FFW)--

 CAPSTEAD SEC. CORP. IV $200 MIL. CMO SER. 1992-VII 'AAA' BY FITCH
 --FITCH FINANCIAL WIRE (FFW)--
 NEW YORK, May 29 /PRNewswire/ -- Capstead Securities Corp. IV's, $200 million Collateralized Mortgage Obligations Series 1992-VII are rated 'AAA' by Fitch.
 The rating reflects the high quality of the underlying collateral, an adequate level of credit support, and the dependability of the administrator, Lomas Mortgage USA, Inc. Fitch also believes that cash flow from the loans will be sufficient to cover principal and interest on the bonds and that the bondholders are legally insulated from bankruptcy concerns. The prudent underwriting standards developed by Capstead Mortgage Corp. (CMC) for acquiring mortgage loans further enhances the pool's credit quality.
 The pool consists of approximately 648 conventional, fixed-rate 30-year mortgage loans primarily secured by first liens on one- to four- family residential properties. The weighted average original loan-to- value (LTV) ratio of approximately 72 percent combined with all of the loans being secured by owner-occupied properties, mitigates the potential for defaults and losses. Additionally, approximately 82 percent of the pool is located in California. Therefore, losses arising from loan defaults should be comparably lower than those of other regions due to the state's economic strength and diversity. These factors are reflected in the level of credit enhancement.
 Credit enhancement will be provided by a 9 percent mortgage pool insurance policy issued by General Electric Mortgage Insurance Corp. (GEMICO). In addition, special hazard losses will be covered by a special hazard insurance policy issued by Aetna Casualty and Surety Co. The trustee also will establish a bankruptcy account, with funds deposited by CMC, to cover losses due to bankruptcies. Fitch believes the loss coverage provided by these sources is more than sufficient and supportive of the 'AAA' rating.
 The bonds are special allocation bonds, whereby the Category II bonds (Class VII-G and Class VII-H) will absorb excess credit losses in the unlikely event that coverage under the mortgage pool insurance policy is depleted. Fitch believes the pool policy will be able to provide protection for the Category II bonds against credit losses, irrespective of their loss position. In addition, an approximately $65,000 fungible reserve fund is available to cover compensating interest payments on prepaid mortgage loans.
 -0- 5/29/92
 /CONTACT: Michele J. Loesch, 212-908-0686, or Alexander K. Zabik, 212-908-0634, both of Fitch/ CO: Capstead Securities Corp. IV ST: IN: FIN SU: RTG


TQ -- NY050 -- 5270 05/29/92 15:05 EDT
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Date:May 29, 1992
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