Search

FTAlphavilleFT Alphaville is a 2008 Webby Award Winner

Log in

Register for a free account

Principal content

• Today
• M&A
• Private equity
• Hedge funds
• Capital markets
• People

Triple A failure

This entry was posted by Sam Jones on Friday, July 4th, 2008 at 11:45 and is filed under Capital markets. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.

1. Jul 08   14:51 Posted by Bank Modeling and Financial Derivatives To Hedge Risk Caused Credit Meltdown « MB007 [report]

   […] Sam Jones has one striking visual of that cost: a bar chart showing the current ratings of 469 CDO tranches which were rated AAA at issue. Fewer than a quarter of them retain that top rating; a lot of them are now CCC rated, and a fair few even have a D rating. […]

2. Jul 04   20:52 Posted by C Davis [report]

   What does this bi modal distribution of tranches tell you about how tranches are structured (there are largely AAA or CCC and not much in between)? To me it says that there is probably a considerable amount of fraud and/or incompetence in the way these debt classifications were originally structured. I wont be surprised to see more downward migration to come.

3. Jul 04   13:58 Posted by bsb [report]

   all that chart suggests to me is that there are a lot more downgrades yet to come

   have a good weekend everybody

4. Jul 04   12:33 Posted by Cy Monsed [report]

   Sadly the financial world and our wallets would be far better off without these value destroying raters. True, markets would have grown slower and more hesitantly but would that not have been better than the mess we are in today?