In a completely expected move (at least in this corner) is yet another S&P downgrade in Alt-A mortgage backed securities .
June 11, 2008-Standard & Poor's Ratings Services today lowered its ratings on 65 classes from 19 residential mortgage-backed securities (RMBS) transactions backed by U.S. Alternative-A (Alt-A) mortgage loan collateral issued in 2006.

In addition, we affirmed our ratings on 134 classes from 20 RMBS transactions backed by U.S. Alt-A loans. At the same time, we removed all 65 classes that we downgraded and 40 of the classes that were affirmed from CreditWatch, where they were placed with negative implications on April 29, 2008. Many of the downgrades were from AAA to BB or BBB-. Here are a few samples:

The havoc caused by liar loans and pay option arms, most of which are hiding out in various Alt-A pools, is nowhere near the bottom. For more discussion of this topic please see Things That Have Not Yet Happened .

By Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

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Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance, low volatility, regardless of market direction. Visit http://www.sitkapacific.com/ to learn more about wealth management for investors seeking strong performance with low volatility. You are currently viewing my global economics blog which has commentary 7-10 times a week. I am a "professor" on Minyanville. My Minyanville Profile can be viewed at: http://www.minyanville.com/gazette/bios.htm?bio=87 I do weekly live radio on KFNX the Charles Goyette show every Wednesday. When not writing about stocks or the economy I spends a great deal of time on photography. I have over 80 magazine and book cover credits. Some of my Wisconsin and gardening images can be seen at www.michaelshedlock.com.

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