Moody’s Describes Processes for Monitoring Residential MBS Performance and Ratings
August 15, 2003
Moody’s uses computer-generated filters and a number of quantitative screens to analyze residential mortgage-backed securities and to assess the appropriateness of the current rating of each tranche, according to the rating agency. In a report on how the rating agency monitors its more than 3,000 outstanding MBSs that comprise nearly 5,000 pools and 20,000 tranches, Moody’s said it focuses on screening the entire universe of