Scratch(ed) and Dent(ed) RMBS

…just to give you an idea of the severity of these downgrades, you’ve got stuff like the M1 class of C-BASS 2006-RP2, a Scratch and Dent mortgage-backed deal issued by Credit Suisse in 2006, being revised from AA to CC, and assigned a negative outlook. These are basically bad mortgages getting worse, of course, but it does suggest that such loans are still filtering through the US financial system, or at least, through some of the ratings agencies.