(Reuters) - The move by S&P, a leading rater of corporate bonds, rattled global financial markets on fears the unfolding crisis stemming from risky home loans may have a wider impact on the economy and prompt investors to sell securities tied to so-called subprime debt.
S&P conceded that it failed to see the extent of losses when originally rating the debt, which include 612 residential mortgage securities. The agency said it is overhauling its methodology and reviewing its ratings of the $1 trillion market for debt structures known as collateralized debt obligations, or CDOs.
Read more at Reuters.com Bonds News
S&P conceded that it failed to see the extent of losses when originally rating the debt, which include 612 residential mortgage securities. The agency said it is overhauling its methodology and reviewing its ratings of the $1 trillion market for debt structures known as collateralized debt obligations, or CDOs.
Read more at Reuters.com Bonds News
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