Fitch Considering Disclosure of the Holder of MBS Equity Pieces to Boost Transparency for Investors
July 3, 2008
Fitch Ratings last week unveiled a proposal to have key transaction parties disclose whether they retain the economic risk of the equity or first loss piece on Fitch-rated MBS. The rating service said the disclosure could be disruptive for some secondary market participants, but would fulfill regulators’ calls for increased transparency. Before the non-agency MBS market collapsed, investor...