Printer Friendly

CAPSTEAD SECURITIES IV $200 MILLION COLLATERALIZED MORTGAGE OBLIGATIONS SERIES 1992-VI 'AAA' BY FITCH -- FITCH FINANCIAL WIRE --

CAPSTEAD SECURITIES IV $200 MILLION COLLATERALIZED MORTGAGE OBLIGATIONS
 SERIES 1992-VI 'AAA' BY FITCH -- FITCH FINANCIAL WIRE --
 NEW YORK, May 29 /PRNewswire/ -- Capstead Securities Corp. IV's, $200 million Collateralized Mortgage Obligations Series 1992-VI 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 610 conventional, fixed-rate 15-year mortgage loans primarily secured by first liens on one-to four-family residential properties. The relatively low weighted average original loan-to-value (LTV) ratio of approximately 68 percent, combined with all of the loans being secured by owner-occupied properties, mitigates the potential for defaults and losses. Additionally, approximately 63 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 low level of credit enhancement.
 Credit enhancement will be provided by a 7 percent mortgage pool insurance policy issued by General Electric Mortgage Insurance Corp. (GEMICO). Additionally, special hazard and bankruptcy losses will be covered by a special hazard insurance policy and a bankruptcy bond issued by Commerce and Industry Insurance Co. Fitch believes the loss coverage provided by all three sources is more than sufficient and supportive of the 'AAA' rating.
 The bonds are special allocation bonds, whereby the Class VI-M bonds 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 Class VI-M bonds against credit losses, irrespective of their loss position. In addition, an approximately $32,000 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


LR -- NY049 -- 5251 05/29/92 14:45 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:May 29, 1992
Words:387
Previous Article:OPINION SURVEY COMMISSIONED BY JOHNSON & JOHNSON REVEALS NATIONWIDE CONCERN FOR HEALTH OF MOTHERS AND CHILDREN
Next Article:HAMBURGER HAMLET OPENS NEW RESTAURANT IN NORTHRIDGE, CALIF.
Topics:


Related Articles
CAPSTEAD SECURITIES IV $350 MILLION SERIES 1992-IV 'AAA' BY FITCH -- FITCH FINANCIAL WIRE --
CAPSTEAD SECURITIES CORP. IV $125 MILLION SERIES 1992-III 'AAA' BY FITCH -- FITCH FINANCIAL WIRE --
CAPSTEAD SEC. CORP. IV $200 MIL. CMO SER. 1992-VII 'AAA' BY FITCH --FITCH FINANCIAL WIRE (FFW)--
CAPSTEAD SECURITIES IV CMO SERIES 1992-V RATED 'AAA' BY FITCH -- FITCH FINANCIAL WIRE --
CORRECTION TO FITCH RATES CAPSTEAD SECURITIES IV CMO SERIES 1992-IX
CAPSTEAD SECURITIES IV CMO SERIES 1992-X RATED 'AAA' BY FITCH -- FITCH FINANCIAL WIRE --
CAPSTEAD SECURITIES CORP. IV CMO SERIES 1992-VIII RATED 'AAA' BY FITCH -- FITCH FINANCIAL WIRE --
CAPSTEAD SECURITIES CORP. IV CMO SERIES 1992-XII RATED 'AAA' BY FITCH -- FITCH FINANCIAL WIRE --
PMI-INSURED "SUPER-SENIOR" MORTGAGE DEBT AFFIRMED, OFF FITCHALERT -- FITCH FINANCIAL WIRE --
CMC SECURITIES CORP. CMO $175 MILLION SERIES 1993-D 'AAA' BY FITCH -- FITCH FINANCIAL WIRE --

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters