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FITCH ADDS PRICE, CASH FLOW INDICATORS TO CMO V-RATINGS -- FITCH FINANCIAL WIRE --

 FITCH ADDS PRICE, CASH FLOW INDICATORS TO CMO V-RATINGS
 -- FITCH FINANCIAL WIRE --
 NEW YORK, Aug. 7 /PRNewswire/ -- Fitch is adding price and cash flow indicators to $204 billion of V-Rated CMO tranches, effectively immediately.
 V-Ratings are a key measure of volatility, or market risk, of collateralized mortgage obligations. In response to CMO investors, the underlying data supporting the V-Ratings are being displayed as fields labeled VPR for price and VCF for cash flow. They'll appear on Bloomberg, Telerate and Knight-Ridder covering 7,100 outstanding tranches in the Fitch V-Rating database.
 There's no charge to access Fitch V-Ratings on these vendor services.
 The price and cash flow indicators are scaled one through five, similar to V-Ratings. VPR measures a tranche's price and total return volatility over a dozen interest rate scenarios. Likewise the VCF measures cash flow and duration variability over the same interest rates changes.
 Price (VPR) and cash flow (VCF) indicators appear as a one-to-five scale. One is "most stable", two is "stable," three is "average", four is "less
stable" and five is "least stable." These appear as fields with V-Ratings.
 Investors can use these indicators to determine if specific CMO tranche characteristics match their investment objectives. When used in conjunction with the tranche's V-Rating investors will have a comprehensive assessment of a CMO tranche's risk characteristics.
 Fitch has V-Ratings on most agency REMICS issued in 1991 and 1992's first quarter, and all new offerings by Kidder, Peabody & Co. V-Ratings offer a common, independent framework for evaluating CMO performance under 12 divergent interest rate scenarios. The ratings, scaled V1 through V5, provide a relative measure of each tranche's total return, price and cash flow variability given changing interest rates. Tranches rated V1, V2, have low volatility, V3 is moderate, V4 is volatile, and V5 most volatile.
 Fitch V-Ratings are available on Bloomberg by pressing "FVR" and "GO", on Telerate beginning on page 26300, and on Knight-Ridder beginning on page 5300.
 -0- 8/7/92
 /CONTACT: James D. Nadler, 212-908-0538, Richard L. Scholz, 212-908-0616, or Mike Salm, 212-908-0636, all of Fitch/ CO: Fitch Investors Service ST: New York IN: FIN SU: RTG


AH -- NY040 -- 8090 08/07/92 14:51 EDT
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Date:Aug 7, 1992
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