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CAPSTEAD SECURITIES CMO SERIES 1991-VIII RATED 'AAA' BY FITCH -- FITCH FINANCIAL WIRE --

 CAPSTEAD SECURITIES CMO SERIES 1991-VIII RATED 'AAA' BY FITCH
 -- FITCH FINANCIAL WIRE --
 NEW YORK, Dec. 23 /PRNewswire/ -- Capstead Securities Corp. IV's, $125 million Collateralized Mortgage Obligations Series 1991-VIII are rated 'AAA' by Fitch. The rating takes into account the characteristics of the underlying collateral as well as the level of credit support. 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 enhances the credit quality of the pool further.
 The pool consists of "5/25" mortgage loans, which provide for a one- time interest rate adjustment 5 years from the date of origination. The index used on the adjustment date will be the FNMA posted annual yield for 30-year fixed-rate mortgages for 30 days delivery. Because of the payment shock to the borrowers, Fitch assumed a higher default rate to determine an adequate level of credit enhancement. However, the 5/25 loans may not experience as high a default rate than those loans that have a more frequent adjustment because there is a better chance of an improvement in the borrower's financial status. The pool's weighted average loan-to-value ratio (LTV) is approximately 74.6 percent and almost 95.4 percent of the properties are located in California. While the LTVs are higher for this pool compared to other fixed-rate CMOs issued by Capstead, Capstead's conservative underwriting standards should mitigate some of the increased default risk associated with the higher LTVs.
 Credit enhancement will be provided by a 12.5 percent pool insurance policy issued by General Electric Mortgage Insurance Corp. (GEMICO). In addition, special hazard and bankruptcy losses will be covered by separate insurance policy issued by Commerce and Industry Insurance Co. Fitch believes the loss coverage provided by all three sources is more than sufficient and supports the 'AAA' rating.
 CMC's underwriting standards generally conform to FHLMC and FNMA guidelines with the exception of initial principal balances. The guidelines were developed based on anticipated requirements of insurers and management's analysis of rating agency criteria. Fitch believes that CMC's underwriting standards contribute to the pool's overall credit quality and will have a positive impact on its performance.
 -0- 12/23/91
 /CONTACT: Alexander K. Zabik, 212-908-0500, or Louis A. Colosimo, 212-908-0567, both of Fitch/ CO: Capstead Securities Corp. IV ST: IN: FIN SU: RTG


KD -- NY074 -- 4947 12/23/91 16:22 EST
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Date:Dec 23, 1991
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