KBRA releases research in response to potential RMBS exposure of our rated universe of residential mortgage-backed securities (RMBS) to the unfolding events surrounding Hurricane Ian, which made landfall in the southwestern coast of Florida on September 28.

Key Takeaways

• Generally, KBRA’s rated RMBS show moderate exposure to properties located in Florida, with an average transaction exposure of 7.1% by current balance.
• Within Florida, six counties account for more than one-half of the exposure area by current balance within the state—counties include the cities of Miami and adjacent Atlantic beach locales as well as Orlando, Tampa, and Clearwater. The latter three are located within IA Counties.
• The storm’s path appears to have directly crossed over some of these cities, which exacerbates potential exposures given the storm’s size and the correlation of the more populous and affluent cities with coastal regions.
• 21 KBRA-rated RMBS have more than 20% exposure to properties located in Florida.
• In regard to IA Counties, which may be among the most affected within Florida, KBRA found its rated transactions to have 1.7% exposure, on average. However, the top 10 transaction exposures to these areas ranged between 4.7% and 8.4%.

Click here to view the report.

Related Publications

• Ten KBRA-Rated RMBS With Outlier Exposure to Hurricane Ida
• KBRA’s Potential RMBS Exposure to Hurricane Laura
• KBRA’s Potential RMBS Exposure to Hurricane Dorian

About KBRA

KBRA is a full-service credit rating agency registered in the U.S., the EU, and the UK, and is designated to provide structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.

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