how prime AAA becomes BBB- junk
My eyes almost pop out when I see stuff like this. Looking over a recent list of Countrywide securities that Fitch is downgrading I notice that some of them are going right from AAA to BBB-. Talk about a change! That's going from the best of the best to the worst of the worst in one stroke of the pen.
It really makes a guy wonder what ratings mean anyway if a ratings agency can come by later and just say "oops, we made a mistake and this investment grade asset is now worthless".
Does anyone still think we should trust the professionals who tell us everything is hunky dory? Analysts at Fitch and Moody still claim that the default rates of many mortgage securities won't increase substantially. And these were the same guys who still claimed these (now downgraded) junk securities were investment quality just a few months ago.
Fitch Affirms $10.4MM and Downgrades $544.8MM from 2 Countrywide Second Lien Transactions
It really makes a guy wonder what ratings mean anyway if a ratings agency can come by later and just say "oops, we made a mistake and this investment grade asset is now worthless".
Does anyone still think we should trust the professionals who tell us everything is hunky dory? Analysts at Fitch and Moody still claim that the default rates of many mortgage securities won't increase substantially. And these were the same guys who still claimed these (now downgraded) junk securities were investment quality just a few months ago.
Fitch Affirms $10.4MM and Downgrades $544.8MM from 2 Countrywide Second Lien Transactions
Comments
Ratings Agencies Under Fire
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Rating agencies are trying to save there @sses and it looks like in doing so they are pouring gas on the fire.
the whole model of using a rating agency as some sort of market proxy is really ridiculous
You can take a dog turd and repackage it into a tootsie roll!!!
And then sell the new product as something desireable.....
Are we not men???!!!!