S&P Seeks Market Opinion on Proposed Stressed Principal Recovery Ratings for MBS
August 14, 2009
Standard & Poor’s is seeking comment on proposed “stressed recovery ratings” which are designed to provide investors estimates of ultimate recovery of principal on specific MBS if they default. The proposed stressed recovery rating methodology would apply to senior tranches of prime, Alt A, and subprime MBS, which S&P originally rated at ‘AAA’ but have been downgraded to ‘BB+’ or...