Moody’s Investors Service downgraded ratings of 270 tranches and confirmed ratings of another four tranches within eight residential mortgage-backed securities (RMBS) transactions backed by Alt-A loans. The deals were issued by Credit Suisse First Boston (CSFB) Mortgage-Backed Pass-Through Securities in 2005. They are backed by first-lien, fixed-rate Alt-A mortgages. The downgrades arrive amid “rapidly deteriorating performance of Alt-A pools in conjunction with macroeconomic conditions that remain under duress,” the credit-rating agency said Tuesday. It’s part of Moody’s initiative to update loss expectations on Alt-A pools issued from 2005 to 2007. The downgrades put many of the tranches further into junk status, from double-B to triple-C, for example. Moody’s ran each individual pool through a number of stress scenarios to assess the rating implications of updated loss expectations on Alt-A RMBS. The scenarios include 96 different combinations within six loss levels, four timing curves and four prepayment curves. Write to Diana Golobay.
Moody’s Downgrades $3.3bn of Credit Suisse Alt-A RMBS
Most Popular Articles
Latest Articles
Kristen Sieffert leads the reverse mortgage presence at The Gathering
FOA’s president spoke about bringing reverse mortgages into the mainstream at the event in Scottsdale, Arizona.