Thursday, July 12, 2007

Ooops

by Tanta on 7/12/2007 10:22:00 AM

Remember the big deal S&P announcement from Tuesday, announcing negative ratings watch on 612 classes of subprime securities? This is what S&P said on July 10:

The affected classes total approximately $12.078 billion in rated securities, which represents 2.13% of the $565.3 billion in U.S. RMBS rated by Standard & Poor's between the fourth quarter of 2005 and the fourth quarter of 2006.

This is what the revised version, dated July 11, says:
The affected classes total approximately $7.35 billion in rated securities, which represents 1.3% of the $565.3 billion in U.S. subprime RMBS rated by Standard & Poor's between the fourth quarter of 2005 and the fourth quarter of 2006.

No explanation is given for the difference between $12.01 billion and $7.35 billion. I'd certainly like to hear S&P verify that $7.35 billion is the original balance of these securities. If it's the current balance, then I'd like to know what the current balance is of the $565.3 billion it is being compared to. Perhaps an enterprising Real Reporter (you know who you are) will delve into this question.