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

NEW YORK (Reuters) – Standard & Poor’s on Tuesday said it may cut $57.1 billion of subprime-related debt due to continuing delinquencies and a worsening outlook, the rating company said. S&P will likely lower many of the ratings over the next few weeks because monthly performance data shows delinquencies and foreclosures continue to rise for deals issued in the first half of 2007, the rating company said. “Today’s rating actions incorporate our most recent economic assumptions and reflect our expectation of further defaults and losses on the underlying mortgage loans,” S&P said in a statement.

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