Credit market round up: Pain in Spain
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Credit market round up: Pain in Spain

In a stark reflection of the reliance of Spanish securitizers on the European Central Bank’s largesse, the Spanish government has itself agreed to purchase Spanish RMBS and SME CLOs. It has established a Financial Asset Acquisition Fund that will purchase securities with a minimum double-A rating up to €50 billion in volume. Spain has also introduced a mortgage moratorium for the unemployed under its mortgage policy facility. This will enable jobless workers and pensioners with families to support to defer mortgage payments for up to two years. The moves reflect concern about the impact that Spain’s real estate slump will have on the wider economy.

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