Moody’s about to neutron bomb CMBS market
Thu Feb 5 2009 7:15 pm
by Bob Morris.
Moody’s is about to downgrade as much as $300 bn in commercial mortgage backed securities. This will force many entities that hold them to sell, as they are not permitted to own lower-rated securities. Plus, everyone will have to write-down the current (probably fantasy) valuations on their books.
Which will probably trigger more downgrades.
Posted in: Credit crisis.
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