Fitch: U.S. Bank TruPS CDOs Combined Default & Deferral Rate Declined
In June, 12 banks representing $111.7 million of notional in 15 CDOs cured. Additionally, one previously cured issuers representing $4 million of notional in one CDO redeemed its TruPS. There were no new defaults in June. Furthermore, three banks representing $35 million of notional in six CDO's and one issuer representing $5 million of notional in one CDO re-deferred and deferred respectively on their TruPS.
One defaulted banks with the notional of $20 million in one CDO have been exchanged for preferred stock and the notional has been removed from the index.
Across 78 Fitch-rated TruPS CDOs, 231 defaulted bank issuers remain in the portfolio representing approximately $5.7 billion of collateral. 132 issuers are currently deferring interest payments on $1.6 billion of collateral.
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