Fitch: Commercial CDOs Shouldn't Suffer from Subprime Mess

Thangavelu, Poonkulali
April 2007
National Mortgage News;4/30/2007, Vol. 31 Issue 31, p6
Trade Publication
The article reports that commercial real estate-backed collateralized debt obligations (CRE CDOs) do not have much exposure to the subprime residential mortgage-backed securities (RMBS) in the U.S. Based on Fitch Ratings, the two CRE CDOs with the largest exposure to subprime RMBS have an exposure to 2003 and 2004 vintages of 50.4% and 34.7 %. However, all 2006 subprime RMBS bonds are of investment grade quality.


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