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Strategies & Market Trends : The Residential Real Estate Crash Index
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To: stomper who wrote (109177)3/11/2008 9:45:55 PM
From: Think4YourselfRead Replies (1) of 306849
 
re: There are mountains of tranches out there that are rated AAA and have half their make up at 90 days delinquent and they are still rated AAA by the agencies.

The ratings agencies have been downgrading AAA tranches like mad for the past two months, and many more are on credit watch.

At this point there is an awful lot of stuff out there that is no longer AAA. Given that over 90% of people pay their mortgage on time each month, I would tend to think the majority of the remaining AAA not on credit watch is pretty good.
If the monolines suddenly stop ponying up on insurance for insured tranch defaults things will deteriorate overnight. For now, AAA still means something, Just not what it used to.
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