Moody's: Swapless Dutch RMBS face increased risk of revenue shortfall if rising interest rates reduce prepayments
Frankfurt am Main, December 13, 2016-- Dutch residential mortgage-backed securities featuring a partial interest rate hedge will face increased risk of interest rate shortfalls in the coming years if prepayments fall as a result of rising interest rates, says Moody's Investors Service. "We expect this type of risk to become more pronounced in the future for two reasons. First, low interest rate environment over the past few years has led to a steady decrease of the average...
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