Trups CDO deferral rate lessens, says Fitch

HNB Corporation was the biggest trups issuer to default last month, according to the latest research on the sector by Fitch. The bank had $32 million of trups outstanding that are held in CDOs rated by Fitch.

July continued the recent trend which has seen something of a leveling off in trups default and deferral rates. The rate of trups defaults increased by 0.3% to 14.1%, as a result of defaults by issuers that had previously been deferring payments on their securities. However, there was a slight decrease in the level of deferrals to 17.2%.