by Calculated Risk on 1/04/2008 12:24:00 PM

From Reuters: S&P may cut $6.42 bln CDOs affecting 149 tranches

Standard & Poor's may cut the rating on $6.42 billion of collateralized debt obligations (CDOs) following downgrades to billions of dollars worth of second-lien residential mortgage-backed securities last month.

S&P said the action affects 149 tranches from 43 U.S. cash flow and hybrid CDOs of asset-backed securities.