Wednesday, Mar 12, 2008
Rotten to the core
Bloomberg: Moody's, S&P Defer Cuts on AAA Subprime, Hiding Loss
"Even after downgrading almost 10,000 subprime-mortgage bonds, Standard & Poor's and Moody's Investors Service haven't cut the ones that matter most: AAA securities that are the mainstays of bank and insurance company investments". "A bond sold by Deutsche Bank AG in May 2006 is AAA at both companies even though 43 percent of the underlying mortgages are delinquent".
Posted by alan @ 09:28 AM (234 views) Add Comment
2 Comments
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1. hpwatcher said...
I suppose they want to delay downgrading the AAA's as much as possible, because it will mean corporate death.
There is nothing to be positive about.....
2. 51ck-6-51x said...
Delay the downgrades until the banks have unloaded all of their junk into the Federal Bank's face. [Sorry I couldn't resist, but you get the gist.]