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Strategies & Market Trends : The Swamp -- Ignore unavailable to you. Want to Upgrade?

To: SwampDogg who wrote (65)	10/15/2007 8:25:49 PM
From: ldo79	Respond to of 491

Could be a bit of a smackdown coming. Should this be the start of the next wave of credit rating "changes", the banks will be smelling the glove again - super-duper funny-money bailout fund and all. ============================= S&P cuts $4.6 bln of subprime mortgage backed assets Mon Oct 15, 2007 6:00 PM ET NEW YORK, Oct 15 (Reuters) - Standard & Poor's on Monday cut its ratings on $4.6 billion worth of residential mortgage-backed securities exposed to subprime mortgages, citing expectations of further defaults and losses in the securities. The downgrades include 402 pieces of 138 transactions. All are backed by first-lien subprime mortgage loans issued in the first three quarters of 2005. The majority of the ratings cuts were in the "BBB" category, which is the lowest tier of investment grade. "These rating actions incorporate our most recent economic assumptions, and reflect our expectation of further defaults and losses on the underlying mortgage loans and the consequent reduction of credit support from current and projected losses," S&P said in a statement. "Furthermore, the affected transactions include provisions that allow the release of credit support on certain step-down dates," S&P said. "The release of credit support after the step-down dates will leave these transactions even more vulnerable to losses going forward." tinyurl.com