Loan performance on subprime residential mortgage-backed securities issued before 2005 has recently deteriorated, Moody’s Investors Service reported.

"Over the coming months, we expect continued negative performance from seasoned subprime pools, as the overhang of impending foreclosures will impact home prices negatively," Moody’s said.

As a result, $50 billion in subprime transactions were placed on review for possible downgrade.

More: continued here

Related Content

Subscribe to the post comments feeds or Leave a trackback