Structured Credit downgrades

This via the FT blog FT Alphaville:

The latest downgrades from S&P – testament to the fact that the structured finance unwind isn’t yet unwound:

330 U.S. CDOs put on credit watch negative
80 second lien RMBS cut to ‘D’

65 Alt-A RMBS ratings cut
28 European synthetic CDOs on credit watch negative

It’s also worth noting that more than $200bn of CDOs have now breached default triggers: more than double the highest estimates from earlier this year.


Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty years of business experience. He is also a regular economic and financial commentator on BBC World News, CNBC Television, Business News Network, CBC, Fox Television and RT Television. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College. Edward also writes a premium financial newsletter. Sign up here for a free trial.