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Moody's: Jumbo-MBS under Review for Downgrades

By Anonymous

From Bloomberg: Moody?s Reviews $143 Billion of Jumbo-Mortgage Bonds (ht Bob_in_MA)

Moody?s Investors Service placed $143 billion of jumbo-mortgage bonds under review for downgrades ... The revisions were prompted by ?the rapidly deteriorating performance of jumbo pools in conjunction with macroeconomic conditions that remain under duress,? Moody?s said.

... An ?overhang of impending foreclosures will impact home prices negatively,? with values likely to decline 9 percent more ... U.S. unemployment will rise to peak at about 10.6 percent ...

Moody?s also said it expects the U.S. government?s effort to curb foreclosures to be less effective than it previously expected because the programs have ?failed to gain traction.?
emphasis added

The problems are moving on up the value chain.

This is a follow-up to this story yesterday: Luxury-Home Owners in U.S. Use ?Short Sales? as Defaults Rise (many hts!)

Full post as published by Calculated Risk on December 18, 2009 (boomark / email).