The Financial Times notes that the many rumors that UBS had sold its entire portfolio of Alt-A related bonds to Pimco may well have been true, given the big UBS writedown this week. Some think the sale valued the bonds at around 70 cents on the dollar. So far, Alt-A-backed securities have held up fairly well, especially in light of what has happened to its nefarious cousin, subprime-backed bonds. But some think all of that is bound to change. I'm not so sure that all of those people with decent credit scores who took on added debt for vacation and rental homes won't default the same way subprime borrowers did. Maybe not to the same degree, at least. 

For more:
- here's the Financial Times article

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