A reduction in mortgage rates will not factor into the ratings of China's residential mortgage-backed securities (RMBS), S&P Global Ratings said in a Wednesday release.
Bank of China (HKG:3988, SHA:601988) and China Merchants Bank (HKG:3968, SHA:600036), which originate two S&P-rated RMBS, said they will adjust their rates in line with the central bank's recently announced measure.
The adjustments, which will be effective Oct. 25, will apply to the pools backing the two rated RMBS, S&P said.
The rated transactions are Zhaoyin HeJia 2020-5 Residential Mortgage Backed Securitization Trust and Zhong Ying Wan Jia 2021-5 RMBS.
The rating agency expects a minimal decline in the RMBS' weighted-average pool yields due to the rate decline, with credit enhancement to shield the likely effect on cash flow.
Price (HKD): $3.77, Change: $-0.040, Percent Change: -1.05%
免責聲明：投資有風險，本文並非投資建議，以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請，作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考，不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證，投資者應自行研究並在投資前尋求專業建議。