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According to (Moody's Global Credit Ploicy, august 2008), Issuance of new ratings for structured finance products has an increasing trend from 1999 till 2006 where it peaked with more than 25,000 issues. On the other hand it's less than 5000 in the year 1999. Issuance of new rating for US RMBS sector too has the same trend and had its peak value in 2006 and there after it started to decrease.

In 2007 new rating issuance started to decline. 22,465 new structured finance ratings were issued. This number when compared to 2006, where it new rating issuance peaked is 20% less. This decline trend is mainly because of poor performance of mortgage backed sectors. US HEL AND us RMBS new issuance fell 44% and 19% respectively.

In 2008 issuance of new ratings has further went down by 87% when compared to new ratings issued previous year(2007) and down by 91% when compared to 2006 where new rating issuance peaked. Issuance fell sharply in US HEL and UD RMBS sectors.

Rating outstanding

According to (Moody's Global Credit Ploicy, august 2008), There is increase in number of rating outstanding from 1999 till 2008. Till 2007 US RMBS has the largest share of rating outstanding. In 2007 new issuance fell 20% but rating outstanding increased. The main reason for the increase is the rapid issuance in the previous years. In 2008 the case is same where rating outstanding increased when compared to 2007. Highest single share of increase of 25% is recorded in US RMBS sector.

Default rate

According to (Moody's Global Credit Ploicy, august 2008), To differentiate default between corporate and structural finance, moody's introduced material impairments concept in 2003. These material impairments are further classified as principal impairment and interest impairment. Principal impairments are those securities having principal write-downs or losses and the securities that are downgraded to CA or C even if they did not have any interest shortfall or principal write-down. Interest impairments are those securities that are not principal impairments and having outstanding interest shortfalls. (Moody's Global Credit Ploicy, august 2008)

Total impairments have steadily increased from 2001 till 2004. In 2005 with the introduction of new structured finance products which has increased liquidity in to the market, and strong real estate market and low interest rate resulted in low impairments. These impairments are in par with those of 1999-2000 and lower than those observed during the period 2001-2004. In 2006 impairment rate increased slightly. In 2007 there are more impairments in fact these impairments are so huge such that when we sum of all impairments of previous 14 years it nearly equals impairments of year 2007. This is mainly because of home price decline, tightening credit standard followed by banks, increase in interest rate. Of the total impairments in the year 2007 USRMBS has the maximum share. In the year 2008 same trend continued because of collapse of housing market. Total impairments crossed 12000 marks. This impairment rate has effect on whole of the structure. This impairment rate is alarming such that 本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。