Asset Securitizations Not Bulletproof in Bankruptcy, Moody’s Cautions
September 20, 2002
Asset-backed securities are not immune to the financial problems of their sponsors despite the idea that legal structures keep securitizations remote from bankruptcy, Moody’s Investors Service cautions in a new report. In a follow-up to a study done in 1997 on the impact of sponsors’ financial difficulties on some securitizations, the rating agency said the past five years continue to provide evidence of “further denting of the