Bank trups default rate nears 11%, says Fitch

Wednesday, February 10, 2010

Seven new defaults, of which the most significant were by First Regional Bancorp and Marshall Bankfirst, took the number of defaults on bank trups that are owned by CDOs to 85

Comment by: Douglas Watson. Posted 14 years ago [2010-02-11 14:23:53]

We're witnessing a slow moving meltdown for the "AAA" tranches. With a sluggish recovery underway and a lagging recognition of commercial real estate losses by the community and regional banks that populate these deals and are heavily exposed to real estate, the senior most tranches of most bank TRUPS will incur losses in the fullness of time. The junior tranches are already toast!

CLOs

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