Sunday, September 02, 2007
Unsafe at Any Rating
Watching the rating cuts trickle out of the derivatives forest is akin to searching for elephant dung on a path to try and work out how many pachyderms are in the jungle. There's clearly a herd in there. And it's probably much bigger than the ordure you have seen so far would suggest.
`The vehicles are not structured to forcibly liquidate assets in times of crisis,'' Moody's said.
The reason AAA instruments are historically safe is because they get reclassified CCC- before collapsing.