Standard & Poors, the arbiter of what's right and wrong in the financial world, has concluded that more than half of the bonds of Springleaf Mortgage Loan Trust are of higher quality than the bonds of the U.S. of A. Springleaf is offering $497,000,000 of bonds, 59% of which are rated AAA and represent mortgages to homeowners with virtually no equity in their homes and below-average credit scores.
Would you define these loans as subprimes? Aren't subprimes one of the major things that got us into this mess? But, hey, S&P knows what's best and I have faith in their judgment. After all, they have admitted they screwed up big time just a few years ago when they gave AAA ratings to almost every security they rated.
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