Moody's Warns Subprime-Mortgage Defaults To Surge Further

[burythehatchet]

http://www.easybourse.com/bourse-actualite/marches/moody-s-warns-subprime-mortgage-defaults-to-surge-further-624088

Thursday February 26th, 2009 / 13h24
DOW JONES NEWSWIRES Moody's Investors Service raised its loss estimates for $680 billion in U.S. subprime residential mortgage-backed securities issued between 2005 and 2007 and put them on risk for possible downgrade, the latest hit to the ailing financial system.

The ratings agency also said by the end of the year, one-third of subprime borrowers who are currently paying on their mortgages will become delinquent and eventually default, representing 19% of outstanding loans.

Moody's said it boosted its loss estimates on the risky loans, typically given to those with substandard credit histories, amid continued deterioration in home prices, rising losses on liquidated loans and elevated default rates. Subprime loans have seen the highest levels of delinquencies and defaults.
The loans, and mortgage-backed securities containing them, were a key initial cause of the credit crunch as rising delinquencies and subsequent uncertainty to their value helped lead to lenders curtailing activity.

(lot's of numbers at the link)