Moody’s Offers Insight Into Loss Severity in Defaulted MBS Pools
April 30, 2004
Researchers at Moody’s Investors Service have some good news and some bad news for investors in residential mortgage securities that have hit performance problems: if losses accumulate quickly, then you should brace for a full-scale write-down; but if the assets are sliding more slowly, you can look to recover more and more of your investment.