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Home » Store » Taxable » Ratings Agency Missing the Boat on Some Alternative Mortgage Products, Investors and Traders Suggest

Ratings Agency Missing the Boat on Some Alternative Mortgage Products, Investors and Traders Suggest

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Are MBS ratings experts getting it right when it comes to setting enhancement levels and trigger mechanisms for alternative mortgage pools and home-equity loan deals? The ratings services think so. But some bond traders, investors and loan traders say otherwise. Various industry participants complain that the rating agencies were taking too hard a line on products ranging from high loan-to-value mortgages to option ARMs. “In general, the rating agencies have a tough job,” noted…
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