Latest news with #NQM
Business Wire
41 minutes ago
- Business
- Business Wire
KBRA Releases Research – Non-QM Default Study: A Decade of Insights
NEW YORK--(BUSINESS WIRE)--KBRA releases its non-qualified mortgage (NQM) RMBS default study, analyzing over 475,000 loans representing $216.7 billion in original balance from nearly 600 NQM transactions issued between 2015 and April 2025. This report examines performance dynamics across more than 15 key loan attributes—including vintage, CLTV, credit score, documentation type, DSCR underwriting, occupancy, loan purpose, product type, and borrower reserves—and identifies how layered risk factors impact credit outcomes. Key Takeaways KBRA's analysis focused on more than 475,000 loans from nearly 600 NQM transactions issued since 2015. The weighted average (WA) cumulative default rate for NQM loans stands at 3.8%, while realized credit losses remain minimal, averaging just 0.03%. Of the 16,757 defaulted loans, approximately 6,606 have experienced losses—mostly from forbearance or capitalized amounts on active or prepaid loans with an average severity of 1.2% and 0.6%, respectively. Just over 300 loans incurred meaningful losses due to involuntary liquidation, with an average severity of 26.5%. Non-prime credit profiles that included borrowers with prior credit events have shown meaningfully higher default rates than those without, ranging between approximately 8% and 10%. The default study reviews the performance distributions across a comprehensive set of more than 15 loan characteristics including vintage, CLTV, credit score, documentation type, DSCRs, occupancy, loan purpose, and liquid reserves. Deal vintages from 2019 and 2020 have exhibited the highest in default rates due to the COVID-19 pandemic. Loans from 2022 and 2023 deal vintages reflect the next highest, when excluding COVID defaults from all vintages. To date, cumulative defaults for 2019 and 2020 vintages stand at approximately 5.5% and 5%, respectively, excluding COVID defaults. This compares with 2022 and 2023 vintages at around 4% and 4.1%, respectively. Key default drivers (such as CLTV and credit score) show marked variation in default rates across their distribution ranges. Loans with CLTVs of 85% or higher exhibited default rates of 5.5% to date, while those with CLTVs of 65%-70% show defaults of 4.1%. Meanwhile, borrowers with FICO scores below 660 have default rates of nearly 10%, while those above 760 have default rates below 2%. KBRA observes that loans with full income documentation (Full Doc) exhibit notably lower default rates compared to those with alternative documentation (Alt Doc), which have, on average, defaulted at rates 12.9% higher than Full Doc loans. Within the Alt Doc category, performance tends to be more uniform, with DSCR, bank statement, and P&L/CPA letter loans exhibiting similar default behavior. Notable exceptions include written verification of employment (WVOE) and asset-underwritten loans, which demonstrate comparatively stronger performance. Across many loan attributes, variation in default rates between cohorts is narrower than might be expected. This is largely due to lenders' efforts to manage risk layering by requiring compensating factors for loans with higher-risk attributes. An example where this effect is particularly evident is the comparable performance of investor-occupied and owner-occupied loans. In part, this similarity is driven by differences in required FICO scores and CLTV ratios between the two occupancy types. Click here to view the report. Related Publications About KBRA KBRA, one of the major credit rating agencies, is registered in the U.S., EU, and the UK. KBRA is recognized as a Qualified Rating Agency in Taiwan, and is also a Designated Rating Organization for structured finance ratings in Canada. As a full-service credit rating agency, investors can use KBRA ratings for regulatory capital purposes in multiple jurisdictions. Doc ID: 1009732
Yahoo
41 minutes ago
- Business
- Yahoo
KBRA Releases Research – Non-QM Default Study: A Decade of Insights
NEW YORK, June 04, 2025--(BUSINESS WIRE)--KBRA releases its non-qualified mortgage (NQM) RMBS default study, analyzing over 475,000 loans representing $216.7 billion in original balance from nearly 600 NQM transactions issued between 2015 and April 2025. This report examines performance dynamics across more than 15 key loan attributes—including vintage, CLTV, credit score, documentation type, DSCR underwriting, occupancy, loan purpose, product type, and borrower reserves—and identifies how layered risk factors impact credit outcomes. Key Takeaways KBRA's analysis focused on more than 475,000 loans from nearly 600 NQM transactions issued since 2015. The weighted average (WA) cumulative default rate for NQM loans stands at 3.8%, while realized credit losses remain minimal, averaging just 0.03%. Of the 16,757 defaulted loans, approximately 6,606 have experienced losses—mostly from forbearance or capitalized amounts on active or prepaid loans with an average severity of 1.2% and 0.6%, respectively. Just over 300 loans incurred meaningful losses due to involuntary liquidation, with an average severity of 26.5%. Non-prime credit profiles that included borrowers with prior credit events have shown meaningfully higher default rates than those without, ranging between approximately 8% and 10%. The default study reviews the performance distributions across a comprehensive set of more than 15 loan characteristics including vintage, CLTV, credit score, documentation type, DSCRs, occupancy, loan purpose, and liquid reserves. Deal vintages from 2019 and 2020 have exhibited the highest in default rates due to the COVID-19 pandemic. Loans from 2022 and 2023 deal vintages reflect the next highest, when excluding COVID defaults from all vintages. To date, cumulative defaults for 2019 and 2020 vintages stand at approximately 5.5% and 5%, respectively, excluding COVID defaults. This compares with 2022 and 2023 vintages at around 4% and 4.1%, respectively. Key default drivers (such as CLTV and credit score) show marked variation in default rates across their distribution ranges. Loans with CLTVs of 85% or higher exhibited default rates of 5.5% to date, while those with CLTVs of 65%-70% show defaults of 4.1%. Meanwhile, borrowers with FICO scores below 660 have default rates of nearly 10%, while those above 760 have default rates below 2%. KBRA observes that loans with full income documentation (Full Doc) exhibit notably lower default rates compared to those with alternative documentation (Alt Doc), which have, on average, defaulted at rates 12.9% higher than Full Doc loans. Within the Alt Doc category, performance tends to be more uniform, with DSCR, bank statement, and P&L/CPA letter loans exhibiting similar default behavior. Notable exceptions include written verification of employment (WVOE) and asset-underwritten loans, which demonstrate comparatively stronger performance. Across many loan attributes, variation in default rates between cohorts is narrower than might be expected. This is largely due to lenders' efforts to manage risk layering by requiring compensating factors for loans with higher-risk attributes. An example where this effect is particularly evident is the comparable performance of investor-occupied and owner-occupied loans. In part, this similarity is driven by differences in required FICO scores and CLTV ratios between the two occupancy types. Click here to view the report. Related Publications 2025 Mortgage Policy Summit Recap RMBS Trend Watch: Deconstructing Non-Prime Risk Layers U.S. RMBS Credit Indices: April 2025 KBRA-Rated RMBS Exposure to Los Angeles Wildfires About KBRA KBRA, one of the major credit rating agencies, is registered in the U.S., EU, and the UK. KBRA is recognized as a Qualified Rating Agency in Taiwan, and is also a Designated Rating Organization for structured finance ratings in Canada. As a full-service credit rating agency, investors can use KBRA ratings for regulatory capital purposes in multiple jurisdictions. Doc ID: 1009732 View source version on Contacts Jack Kahan, Senior Managing Director, Global Head of ABS & RMBS+1 Armine Karajyan, Senior Director+1 Yee Cent Wong, Senior Managing Director, Lead Analytical Manager, Structured Finance Ratings+1 Eric Thompson, SMD, Global Head of Structured Finance Ratings+1 Media Contact Adam Tempkin, Senior Director of Communications+1 Business Development Contact Daniel Stallone, Managing Director+1 Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
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Business Standard
5 hours ago
- Business
- Business Standard
Andhra Pradesh Cabinet approves establishment of state Quantum Mission
The Andhra Pradesh Cabinet on Wednesday approved the establishment of a state Quantum Mission, Minister K Parthasarathy announced. The decision was taken during a Cabinet meeting chaired by Chief Minister N Chandrababu Naidu. Addressing the media at the Secretariat, the Information and Public Relations Minister said the proposal was put forth by the Department of IT, Electronics and Communications and aims to align with India's broader National Quantum Mission (NQM). A Quantum Valley will be developed in the capital city of Amaravati, with 50 acres of land earmarked for the project. "In future, Andhra Pradesh will be on top in the world in quantum computing. From schools to universities, all of them will be involved in training," Parthasarathy said. The state government has formed a committee of experts on quantum computing to guide the mission. The initiative seeks to embed quantum-related training across education levels, from schools to higher education institutions. What is the National Quantum Mission? The National Quantum Mission is a central government initiative aimed at advancing quantum technology and applications in India. Approved at a total outlay of ₹6,003.65 crore, it runs from 2023–24 to 2030–31 and supports infrastructure, research, and human resource development. Key projects approved by Andhra Pradesh Cabinet • ₹57 crore for viability gap funding at Uddhanam in Srikakulam district • ₹82 crore for drinking water projects in Kuppam, Chittoor district Other Cabinet decisions • Promotion of 248 Andhra Pradesh Special Police (APSP) constables to head constables • Health and Family Welfare Department's proposal to achieve a world record on International Yoga Day on 21 June • Industries Department's plan to establish one MSME park in each assembly constituency
Mint
5 days ago
- Business
- Mint
India is sustaining growth as fastest growing economy for fourth year straight: FM Sitharaman
Finance minister Nirmala Sitharaman on Friday said India is sustaining its growth and has maintained its position as the world's fastest-growing economy for the fourth straight year. Speaking at an event at the Indian Institute of Management, Lucknow, Sitharaman said India is no longer just a middle-class market where goods can be dumped, but a market that fosters innovation. The statement came hours after India recorded a GDP growth rate of 7.4% for Q4 FY25 and an overall GDP growth rate of 6.5% for FY25. The finance minister said all sectors of the economy—services, manufacturing, and agriculture—had contributed immensely to India's growth in FY25. "India's industry as well as manufacturing activity have all been so good during quarter four (Q4), and quarter four's growth alone was 7.4%," said Sitharaman. According to the data released by the National Statistics Office (NSO), the economy expanded 6.5% in FY25 against a 9.2% growth in FY24. According to official data, the economy grew 9.7% and 7.6%, respectively, in FY22 and FY23. "India is sustaining this growth as the fastest growing economy, now for the fourth year continuously without a break, thanks to the work of our small, medium, and large industries," said the finance minister. These industries are ensuring that India's manufacturing and services capacities are intact, she said. She said that while India's economic output recorded high growth rates after the covid pandemic, it continued to sustain this momentum in FY25, the fourth straight year that India was the fastest-growing economy in the world. India's adoption of digital public infrastructure has positioned it as a benchmark across the globe, said Sitharaman. Many world leaders have lauded the adoption of Indian technology across its population, she said. She added that the government was continuously working to reduce regulatory hurdles for businesses. She added that getting rid of corruption is integral to becoming a developed nation, as corruption affects everyone. The FM also called for further investments in science and technology. She said the government had taken significant efforts to invest in futuristic sciences, such as kickstarting the National Quantum Mission (NQM), while simultaneously providing social welfare to citizens. The NQM, launched in the FY21 budget, aimed to promote quantum technology and strengthen India's position in new sciences. Sitharaman also said research in sectors such as oceanography, space, rare earth minerals, and weather forecasting would propel India's growth. "Science and technology-led investments have always been a priority of this country," she said.
Time of India
13-05-2025
- Business
- Time of India
Charting India's quantum future: Policy, startups & pursuit of technological leadership
Few missions in India's tech landscape have generated as much excitement—and anticipation—as the National Quantum Mission (NQM). Launched in April 2023, and operationalised in earnest from January 2024, the mission aims to catapult India into the elite league of nations pioneering quantum technologies. With a bold focus on product development, indigenous innovation, and multi-stakeholder collaboration, NQM is not just about research—it's about outcomes. At the helm of this transformative initiative is Dr. Ajai Chowdhry , co-founder of HCL and Chairman of the EPIC Foundation, who chairs the Mission Governing Board. In this wide-ranging interview with ETGovernment's Ashutosh Mishra, Dr. Chowdhry outlines the structured and goal-oriented approach of the mission—covering everything from T-Hub development and startup incubation to upcoming quantum security standards and a national policy framework. India's quantum journey, it appears, is no longer a distant aspiration but a calibrated strategy in motion. Edited excerpts: Where does the National Quantum Mission currently stand in terms of execution? The mission was launched in April 2023, but actual implementation began in January 2024 with the formation of the Mission Governing Board, which I was appointed to chair. The Board comprises key secretaries from DRDO, MeitY, Department of Space, Department of Atomic Energy, Department of Defence, and the Department of Science and Technology (DST), where the mission is housed. In our first meeting, we decided to get the R&D work started. The government had given a clear directive to establish four technology hubs (T-Hubs): one each in quantum computing , quantum communication, quantum sensing, and quantum materials & devices. We issued a Request for Proposal (RFP) within a week, and received an overwhelming 315 responses. After evaluating them over two months, we selected: IISc for quantum computing, IIT Madras for quantum communication, IIT Bombay for quantum sensing, and IIT Delhi for materials and devices. Each T-Hub was asked to submit six-monthly detailed work plans. This is not research for the sake of research - the mission is product-oriented. The government has defined clear deliverables. For example, in quantum computing, the target is to build a 1000- qubit system. In communication, the goal is a secure 2500 km fiber and space link. Similarly, specific goals exist in sensing and materials. What is the structure adopted for these T-hubs and their operations? We're following a hub-and-spoke model. Along with the four hubs, we have selected 85 researchers from different institutes to work as spokes. Each hub will have its own governing board and a Section 8 company to allow operational flexibility - free from rigid government procedures. Each of these Section 8 companies will have a CEO and a board. The hubs have submitted their detailed plans, which were approved by March 2025. Initial seed funding was provided around four months ago, and the next tranche of funding for research will be released within the next 15 to 30 days. What are you doing to support startups and increase their interest and participation in the National Quantum Mission? Startups are a crucial pillar. We've launched a dedicated startup program that allows for up to ₹30 crore in funding per startup - which is unmatched under any similar support scheme. Of course, the amount varies - some get ₹30 crore, others ₹15 crore, ₹10 crore, or ₹5 crore - depending on their merit. The eligibility criteria include being an Indian company with at least 51% domestic ownership, and the IP must remain in India. In return, the government has put in place a unique security clause, that is, when these startups raise venture capital, they must offer the government the option to buy shares at a 30% discount. This is unprecedented in government funding models. So far, eight startups have been awarded grants. The first cohort was launched in mid-2023, before the T-Hubs were ready. One of the existing Department of Science and Technology hubs handled the evaluations then. Now, with the T-Hubs operational, they will take over that responsibility going forward. Any plans to scale the number of startups supported under the mission? The first phase was through an RFP, and we received nearly 100 applications - eight were selected. We are now planning a new monthly rolling cohort model, where startups can apply by the 15th of every month. This new program is under discussion and awaiting board approval. We expect it to launch in the next month or so. What are you doing, when it comes to the space of education and talent development in the Quantum computing space? We've partnered with AICTE to launch an undergraduate curriculum in quantum technology, developed by a committee under the NQM. It will roll out in 75 universities starting July 2025, and the curriculum is already finalized. We're also providing lab equipment to these universities to support teaching requirements. Additionally, we're training faculty and developing a vast library of supporting video content. An MS program is under development and should be ready in the next month or two. Meanwhile, an MS program was already launched at IISER Pune in September 2024, and the first cohort is underway from there. How is the mission being coordinated across different efforts? We've established a Mission Coordination Center in Noida, under the aegis of IIT Kanpur. Its role is to monitor and ensure that the hubs and projects stay on target. It will conduct six-monthly reviews and also oversee the startup initiative - at least until the T-Hubs fully take over. What is being done on the policy and security front, especially with the quantum threat to cybersecurity? We are developing a detailed quantum policy to guide all departments on transitioning from classical RSA standards to quantum-secure systems. The Board has approved the terms of reference, and a team has been constituted to write this policy. The shift can't happen overnight - organizations like banks operate cybersecurity systems across thousands of sites. Hence, we are advising a staggered, long-term implementation plan. Departments like the armed forces have already taken the lead in this front and have begun implementing some quantum-secure measures. We're also working on standards, accreditation, and product approvals. The Department of Defence (DoD) is helping us on this front, and we are collaborating with the National Physical Laboratory to define Indian standards rather than follow American benchmarks. We want to lead, not follow. Despite recent developments in quantum computing, the momentum of private sector involvement in this field still seems limited compared to other emerging technologies. In your opinion, what needs to be done to increase private participation in quantum R&D? We've held meetings with major IT companies - TCS , Tech Mahindra , HCL, Wipro - to encourage them to initiate quantum research in algorithms and applications, areas where they can significantly contribute. We also brought in pharma companies to demonstrate how quantum technologies could aid drug discovery. The idea was to get the groundwork laid before pulling in large numbers. With over 150 people now involved, the base is strong. Ongoing funding will be tied to regular six-monthly milestone reviews. On the funding, do you think the initial allotment of ₹6,000 crore, is adequate for such an ambitious program? The total budget is ₹6,000 crore, with ₹4,000 crore under DST and ₹2,000 crore contributed by the Department of Space, Atomic Energy, and Defence. MeitY - though initially missed out - has now joined and allocated ₹500 crore, with plans to raise that to ₹1,000 crore. Many people ask if this is enough, and I say - don't just look at the rupee number. The PPP (Public-Private Partnership) model will amplify what we can deliver. Let's first spend what we have. When we run out, we can always go back to the government and ask for more. Amidst the ever rising cyber frauds - do you think quantum technologies can help curb rising cybercrime and financial frauds? If we can make our systems quantum secure, today's cybersecurity challenges - especially in financial systems - can be dramatically mitigated. And that's the direction we're heading toward.
