Subprime delinquencies still rising
Don't think it's almost over. Delinquencies for subprimes extended in 2005 to 2007 are still rising, according to Standard & Poor's. For 2005 and 2006, the increases have been boosted to the 35 percent level. For subprimes issued in 2007, the increase has been higher, to about 25 percent. You can bet that those numbers will rise. What does this mean? Well, most of these loans have already been packaged into mortgage-backed securities. It's unclear if these securities and the CDOs that bought them have already been downgraded. Presumably, they have. The issue is, to what level? There's certainly no let up in store for anything built on subprime loans. Alt-A loan-based securities could be facing similar pressure. Â Â Â
For more:
- here's the AP article
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