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Monday, February 04, 2008

Moody's Raises Loss Assumptions on CDOs

by Calculated Risk on 2/04/2008 12:32:00 PM

From Bloomberg: Moody's Raises Loss Assumption to Almost 18 Percent for CDOs (hat tips SC, Brian)

Moody's Investors Service raised its loss assumptions to as much as 17.8 percent on 2006 subprime bonds packaged into collateralized debt obligations, heralding further ratings downgrades as defaults increase.

Losses are assumed to be at least 14.8 percent, more than double its forecast of last April ...
More downgrades coming.