Last Month S&P put out a report on Reuters that lowered the ratings on bonds backed by 2nd Lien Mortgages. Most lenders that are smart have discontinued selling the the high CLTV 2nd Lien Mortgages because there's no demand in the market for them with investors. We've seen payment default rise and the subprime market start dying off. Some of this residual impact is bleeding over to the players in the A paper world.
A lot of the good loans still in lender's pipeline that fit the high Fico, high CLTV, and good DTI don't look half bad in terms of payment default but investors are still leery about buying. Does anyone GC see the value of the 2nds going up by next year in light of the recent propensity in the market?
http://www.reuters.com/article/bonds...21667220070220
Fraternally,
Boodleboy
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