The outlook is stable for U.S. bank and insurance Trust Preferred Securities collateralized debt obligations, but it is negative for real estate investment trust TruPS and REIT TruPS CDOs, according to Moody's Investors Service. In an annual sector review and outlook report, Moody's said problems among REIT TruPS CDOs have largely been limited to the mortgage REIT and homebuilder areas. Some portfolios holding REIT obligations have been directly affected by the subprime crisis, the rating agency said. Meanwhile, most bank and insurance issuers in TruPS CDOs have "minimal exposure" to subprime residential mortgages, Moody's said.
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