Friday, June 22, 2007

Fitch, S&P Warn Investors About Risks of Subprime Mortgage CDOs, Bonds

(Bloomberg) -- Fitch Ratings and Standard & Poor's
today warned investors that subprime-mortgage securities similar
to those responsible for the near collapse of hedge funds run by
Bear Stearns Cos. are deteriorating quickly.

Fitch said it may cut ratings on four collateralized debt
obligations valued at about $3.1 billion that are linked to some
second-lien subprime loans. S&P downgraded 45 bonds backed by
subprime mortgages and said it may reduce ratings on 88 more,
following similar action by Moody's Investors Service last week.


Read more at Bloomberg Bonds News

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