Since I am sure more than a handful of business journalists read this site: Can someone please track the cumulative downgrades from S&P, Moody's, and Fitch since the crap started hitting the fan in earnest this summer.
There are so many releases, it gets confusing to the layman and the overall picture is muddled. Drip, drip, drip . . . but how big is the puddle? That is an article people will want to read.
Well, I have to say that this drip drip Friday downgrade strategy seems to be working at least for now. Can you imagine what would have happened in the markets if the sum total of downgrades since the summer was announced at one time? A billion here and a billion there and soon you are talking real money.
Of the 1,413 securities downgraded today, approximately 47% were rated in the 'BBB' category and below. Fifteen 'AAA' rated securities were downgraded, accounting for roughly 0.01% of all downgraded securities and 1.1% of the total dollar amount downgraded. No 'AAA' rating was lowered below 'AA'.
They're making sure we see most of the stuff they labeled AAA is still OK--for now.
Standard & Poor's expects that the U.S. housing market will continue to experience price decreases
well jeez guys, if you'd stop downgrading this stuff... and create a new rating...
the super-duper quadA tranche...
i'm sure we could rope some new MBA grads into buying the stuff...
just offer the tranche with a new iphone.
What makes us think they can accurately rate the tranches now? They didnt see this coming when they gave them the BBB the first go around. Now they are merely revaluing these base on past results and events that happened 2 months ago. How many more "events" before all the credit support is gone....
It will be a very interesting PR spin if they have to lower the rating on bond for the second time....
Saying that home prices will hit bottom in late 20008 seems very optimistic to me. By now, everyone should be getting a feeling for how long this takes.
When are they just going to down grade everthing to junk and get it over with. This is like watching paint dry.
Dave Chappel was wrong...not everything is better in slow motion.
Since I am sure more than a handful of business journalists read this site: Can someone please track the cumulative downgrades from S&P, Moody's, and Fitch since the crap started hitting the fan in earnest this summer.
There are so many releases, it gets confusing to the layman and the overall picture is muddled. Drip, drip, drip . . . but how big is the puddle? That is an article people will want to read.
Well, I have to say that this drip drip Friday downgrade strategy seems to be working at least for now. Can you imagine what would have happened in the markets if the sum total of downgrades since the summer was announced at one time? A billion here and a billion there and soon you are talking real money.
I'm seeing some CYA by S&P:
Of the 1,413 securities downgraded today, approximately 47% were rated in the 'BBB' category and below. Fifteen 'AAA' rated securities were downgraded, accounting for roughly 0.01% of all downgraded securities and 1.1% of the total dollar amount downgraded. No 'AAA' rating was lowered below 'AA'.
They're making sure we see most of the stuff they labeled AAA is still OK--for now.
Law firms will be busy from now until rapture with the fallout from all this.
When times get tight, it makes sense to fight over every nickel.
Gary, we need some good vulture lawyers on the job now, to put the fear of God in S&P to speed up this process.
Standard & Poor's expects that the U.S. housing market will continue to experience price decreases
well jeez guys, if you'd stop downgrading this stuff... and create a new rating...
the super-duper quadA tranche...
i'm sure we could rope some new MBA grads into buying the stuff...
just offer the tranche with a new iphone.
What makes us think they can accurately rate the tranches now? They didnt see this coming when they gave them the BBB the first go around. Now they are merely revaluing these base on past results and events that happened 2 months ago. How many more "events" before all the credit support is gone....
It will be a very interesting PR spin if they have to lower the rating on bond for the second time....
Gary,
Yes maybe we can talk someone into the 'RMBS Implode-o-meter' or the like...
Saying that home prices will hit bottom in late 20008 seems very optimistic to me. By now, everyone should be getting a feeling for how long this takes.
"Saying that home prices will hit bottom in late 20008 seems very optimistic to me."
20008? Hell, even Jas isn't that pessimistic!
I've just downgraded S&P, Moody's, and Fitch to 'BCD'... Behind the Curve Downgrades.
catching a falling knife?
Kenneth R. Harney - Vultures Are Circling Over Distressed Properties - washingtonpost.com