Monday, March 10, 2008

Moody's Downgrades Bear Alt-A Deals

From CNNMoney: Moody's downgrades Alt-A deals
Moody's downgraded the ratings of 163 tranches from 15 deals issued by Bear Stearns ALT-A Trust, with 78 downgraded tranches remaining on review for possible further downgrades.

Moody's said the downgrades are based on 'higher-than-anticipated rates of delinquency, foreclosure and REO in the underlying collateral relative to credit enhancement levels.'
Also, former Bear Stearns CEO "Ace" Greenberg responded on CNBC to a rumor that Bear faced a liquidity crisis:
"It's ridiculous, totally ridiculous."