S&P May Downgrade $57 BILLION in Subprime

Posted on April 17th, 2008 in Daily Mortgage/Housing News - The Real Story

Here we go again…more subprime downgrades = more write downs. As housing values continue to fall, risk modeling changes forcing the raters to raise loss expectations. Most of these $57 billion have likely been downgraded, perhaps many times in the past. The negative equity snowball effect is still growing. If you look at the ABX’s, most are still at or near all-time lows so expect more to come. I remember ‘them’ trying to cast doubt on the accuracy of the ABX, but as every month goes by, it looks as though the ABX was th emost accurate gauge yet. – Best, Mr Mortgage   ABX Quotes… http://www.markit.com/information/products/category/indices/abx.html

Wed Apr 16, 2008 6:04pm EDT

http://www.reuters.com/article/telecomm/idUSN1517630620080416

One Response to “S&P May Downgrade $57 BILLION in Subprime”

  1. I think I just solved what are the Level 3 assets in the Big 4 (used to be 5, but ..)

    http://mtgspy.blogspot.com/

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