Fitch: U.S. Bank TruPS CDOs Combined Default & Deferral Rate Remained Low
In July, one issuer representing $3 million of collateral in one CDO, was closed by the FDIC and was marked as defaulted in Fitch's bank TruPS universe. This is the first FDIC bank closure in Fitch rated bank TruPS CDO universe in 2015. One defaulted issuer, with a notional of $5 million in one CDO, was sold from the portfolio with an estimated recovery of 1.6%. There were no new deferrals or cures in July.
Across 76 Fitch-rated TruPS CDOs, 229 defaulted bank issuers remain in the portfolio representing approximately $5.6 billion of collateral. 127 issuers are currently deferring interest payments on $1.5 billion of collateral.
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