2008-01-15 — housingwire.com
S&P said it has revised the assumptions it uses for the surveillance of U.S. residential mortgage-backed securities (RMBS) — chief among them, the rating agency said it has bumped up expected lifetime losses for the 2006 subprime vintage to 19 percent. The agency had previously forecast losses at 14 percent.
Beyond the 2006 vintage, S&P also said it will “recalculate lifetime loss expectations for all vintages of U.S. RMBS†— that means not just subprime, and not just 2006.
S&P also said it was extending its expected loss amount over the lifetime of transactions, as well as revising assumptions on the availability of excess spread. Both are technical points, but important to understand.
The slow ship of ratings agencies continues to turn -- inevitably steering the markets further into the iceberg of recession.
source article |
permalink |
discuss |
subscribe by:
|
RSS |
email 
Comments: Be the first to add a comment
add a comment | go to forum thread
Note: Comments may take a few minutes to show up on this page. If you go to the forum thread, however, you can see them immediately.