Spanish RMBS performance will benefit from a stabilisation in mortgage foreclosures, according to Moody's. The foreclosure rate is almost 14% lower than at the peak of the crisis in 2010, and the agency also expects the number of cases to drop further and those that are in process to be completed quicker. This is important as interest accrued during foreclosure affects the severity of note-level losses, Alberto Barbachano, a senior analyst, said in the report. Foreclosed mortgages fell by 2.3% in 2014 and 9.76% in 2013, with banks waiting for market conditions to improve and avoid selling at a loss. As of the end of 2014, Spanish banks were sitting on €83.4bn of repossessed real estate.
展开▼
