Collateralized debt obligations may be downgraded as many as five levels as mortgage-related losses force Fitch Ratings to review its criteria for $220 billion of the securities.
The biggest cuts will be to AAA rated CDOs that are based on credit-default swaps and aren't actively managed, according to guidelines proposed by Fitch today.
CDOs that package high- yield assets may be reduced as many as three levels for the portions first in line for losses.
Subscribe to:
Post Comments (Atom)
:.
0 comments:
Post a Comment