1 / 5

GLOBAL ABS 2007 SPAIN - Housing and RMBS Market Highlights Barcelona, 13 June 2007

GLOBAL ABS 2007 SPAIN - Housing and RMBS Market Highlights Barcelona, 13 June 2007. SPAIN – Housing and Mortgage Markets. House price growth rate continues its gradual decrease - 7.2% in 1Q07 from 18.3% peak in 4Q03.

tale
Download Presentation

GLOBAL ABS 2007 SPAIN - Housing and RMBS Market Highlights Barcelona, 13 June 2007

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. GLOBAL ABS 2007 SPAIN - Housing and RMBS Market Highlights Barcelona, 13 June 2007

  2. SPAIN – Housing and Mortgage Markets • House price growth rate continues its gradual decrease - 7.2% in 1Q07 from 18.3% peak in 4Q03. • Isolated negative quarterly growth has been spotted in large urban areas, like Madrid for new dwellings (4Q06 vs. 4Q05 - price per sq. meter). • Housing supply may still have to gradually reduce growth from previous years. Housing demand showing clear signs of slowing activity. • During 2006 the number of housing market transactions showed decreasing growth rates reaching 0.1% in 4Q06 vs. 3Q06 (last 12 month figures).

  3. SPAIN – Housing and Mortgage Markets • Borrower’s affordability affected by higher interest rates - resets for ARMs will still be felt during 2H07. • +1 million mortgages originated in 2006 – more moderate mortgage growth is expected (5% - 8%) with HLTV mortgages increasing share of total origination. • Residential mortgages 90+ dq in Spain stood at 0.46% as of 1Q07 (up from 0.39% in 1Q06 and 0.30% in 1Q05). • Fitch’s RMBS 3 Month+ Index shows arrears reaching a peak of less than 0.3% on average, after less than two years since closing. • More HLTV RMBS coming to the market – mortgage insurance favoring credit enhancement and improved execution.

  4. Who We Are ... AIG United Guaranty … • Member company of AIG - the largest insurance company in the world by market value, with operations in more than 130 countries • Specialist insurer which manages all mortgage insurance risks • 40+ years experience… tested in downturns • $142BN mortgages insured worldwide • Present in 18 locations globally (10 in Europe) • Dedicated local resources, people and know-how … Committed to credit protection and innovative solutions for customers • Monoline insurer with a proven track record… fewer than 0.3% claims denied since 1963 • Unmatched financial strength… Rated AA or higher by all three major agencies • Only mortgage insurer able to offer structured capital relief through an OECD affiliate • Global risk program to protect customers wherever they are • Steady support to customers in designing new and specialized products and exploring new opportunities • Access to the wide range of AIG products and services

More Related