Printer Friendly

FUND AMERICA INVESTORS TRUST I $117,350,000 COLLATERALIZED MORTGAGE OBLIGATIONS, SERIES 1993-2 RATED BY DUFF & PHELPS

 NEW YORK, Sept. 14 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has rated the following classes of Collateralized Mortgage Obligations, Series 1993-2 issued by Fund America Investors Trust I:
 Class Amount Rate D&P Rating
 A-1 $117,350,000 1-Month LIBOR +2 percent AAA
 Class A-1 is entitled to monthly payments on the collateral described below less fees of the trust. The payments are allocated first to Class A-1 to meet a sinking fund schedule, then to pay interest on the class and then to pay down principal on the class. In the event that any Class A-1 interest is accrued but not paid on the respective payment date, such interest, together with interest on such interest, is scheduled to be paid once the principal amount of the class has been paid in full. Holders of the trust certificates may terminate the trust on or after the earlier of March 25, 2006 or the date upon which the principal balance of the Class A-1 bonds falls below approximately $29,338,000, in which case the Class A-1 bondholders must be paid their outstanding principal amount plus any accrued and unpaid interest.
 The rating of the bonds reflects D&P's opinion that the Class A-1 bondholders will receive at least $117,350,000 of payments by the Class A-1 maturity date. The rating does not address either the right of bondholders to receive payments on the bonds in excess of an amount equal to the aggregate principal amount of the bonds or whether bondholders will suffer lower than anticipated yields. In addition, the ratings do not address whether the payments on the bonds will take the form of either principal or interest.
 The bonds are secured by collateral consisting of 37 different classes of REMIC and CMO securities issued by the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Association (Freddie Mac) and various private issuers using federal agency mortgage-backed securities as collateral for their offerings. The securities generally consist of variations of principal only, interest only, and inverse floating rate. The bonds were issued pursuant to an indenture between Fund America Investors Trust I as issuer and State Street Bank and Trust, as trustee.
 The analysis for the ratings primarily focused on prepayments of the mortgage pools underlying the REMIC securities and the subsequent effect on bond cash flows.
 -0- 9/14/93
 /CONTACT: Henry W. Hayssen, 212-908-0209, for Duff & Phelps/


CO: Fund America Investors I ST: New York IN: FIN SU: RTG

LD -- NY090 -- 1986 09/14/93 18:16 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Sep 14, 1993
Words:424
Previous Article:DUFF & PHELPS: PREMIER AUTO TRUST 1993-5 ISSUES WITH 100 PERCENT PRE-FUNDING ACCOUNT
Next Article:HOLLINGER INC. ANNOUNCES FILING OF PRELIMINARY PROSPECTUS
Topics:

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