Two classes of notes from Triaxx Funding High Grade I Ltd., which invests in residential mortgage-backed securities, have been downgraded by Fitch Ratings.The class B-1 mezzanine floating-rate notes were downgraded from AA to BB, and the class B-2 mezzanine floating-rate notes were downgraded from BB to B. Both classes remain on Rating Watch Negative. The downgrades were attributed to concerns about potential margin calls by the repo counterparty if there is a further drop in market prices. Triaxx invests in triple-A rated RMBS assets using proceeds raised by issuing notes and equity and using repo funding, Fitch said.
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