Securitization

Fitch: Rating Pressure Continues to Mount for U.S. Mortgage REITs 

Limited access to capital has hurt U.S. mortgage REITs, thus worsening funding profiles and growth prospects and leading to increased ratings pressure in the last several weeks, according to a special report released today by Fitch Ratings (no link). The rating agency said that recent declines in the market value of unsecuritized assets and the reduction of advance rates for short-term debt employed to finance these assets have also triggered margin calls, and consequently reduced liquidity.