Subprime Lending

S&P: Subprime RMBS Losses Will Rival 2000 Vintage 

According to a report issued recently by Standard & Poor’s, the rating agency said it expects losses residential mortgage-backed securities issued in 2006 will fall between 5.25 percent and 7.75 percent, the worst performance for a subprime RMBS vintage since 2000. The S&P report also noted that while most ‘BBB’ and ‘BBB-‘ rated classes are protected from losses, they are likely to see higher default rates than other similarly rated classes in recent history.