Spanish Housing and Securitisation Market Update

In this commentary, we provide an overview of the Spanish housing market as well as how the recent past is shaping the residential mortgage-backed securities (RMBS) market.

Key findings include:
-- The Spanish government introduced several supportive measures due to the impact of the pandemic, which kept the delinquencies low.
-- Despite the double-digit decline in GDP caused by the pandemic, Spanish house prices have remained strong.
-- The total number of Spanish RMBS deals rated by DBRS Morningstar is 44 and the weighted-average 90+-day arrears by current balance of these deals was 0.8%.

“In 2022, DBRS Morningstar expects the economic recovery to continue, albeit at a slower pace than previously expected, due to geopolitical uncertainties gripping the major world economies. Despite the double-digit decline in GDP caused by the pandemic, Spanish house prices have remained strong overall and house price appreciation may continue during 2022, particularly in large cities such as Madrid and Barcelona”, said Ketan Thaker, Head of European RMBS and Covered Bonds at DBRS Morningstar.