Wednesday, July 22, 2009

S&P Increases Forecast for Subprime Mortgage Losses - Again!

by Bill McBride on 7/22/2009 06:07:00 PM

From Bloomberg: Subprime-Mortgage Loss Forecast Is Raised by Standard & Poor’s

Standard & Poor’s again boosted its projections for losses from U.S. subprime mortgages backing securities ... Losses on loans backing 2006 securities will reach an average of about 32 percent of the original balances, while losses for similar 2007 bonds will total about 40 percent, the New York-based ratings firm said in a statement today. In February, S&P said the losses would total an average of 25 percent for 2006 bonds and 31 percent for 2007 securities.
Ouch!

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