Tuesday, April 22, 2008

Moody Downgrades

Moody's has slashed ratings on 1,923 tranches from 232 seperate subprime RMBS deals from 2005-2007 vintages, all of which were previously rated AAA.

Some questions:
1) Why were they ever AAA?
2) What took them so long to downgrade?
3) How much of this crap has been used as collateral in the Fed window?

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