(Over 1800 tranches were downgraded. Put a few hundred billion more in writedowns on the fire. - AM)
January 30, 2009
Moody’s Investors Service last week quadrupled its projected cumulative loss expectations for Alt A mortgage-backed securities and warned that most deals will be downgraded, many to below investment-grade. The actions confirm that Alt A MBS will perform worse, ratings-wise, than already battered subprime MBS.