Downgrades Downstream

The agencies have acted at the mortage-backed level, suggesting more action at the CDO level is only a matter of time.

That this many have been downgraded this quickly by the reactionary agencies suggests momentum may be pushing things up the credit stream faster than some anticipate…time will tell.

A like-minded scenario is further explored here, where the writer summarizes the integration and coordination of the rating agencies in the CDO underwriting process.

This chart mentioned in the above article may point in the direction we may be headed:

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