{"id":332132,"date":"2010-02-17T12:11:00","date_gmt":"2010-02-17T17:11:00","guid":{"rendered":"http:\/\/www.businessinsider.com\/standard-and-poors-here-it-finally-comes-alt-a-market-freaking-out-about-default-2010-2"},"modified":"2010-02-17T12:11:00","modified_gmt":"2010-02-17T17:11:00","slug":"sp-the-alt-a-market-is-freaking-out-about-default-again-as-the-reset-d-day-approaches","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/332132","title":{"rendered":"S&P: The Alt-A Market Is Freaking Out About Default Again, As The Reset D-Day Approaches"},"content":{"rendered":"

\"Chart\"<\/p>\n

Remember the Alt-A time bomb<\/a>?<\/p>\n

It’s the wave of Alt-A mortgages that were sold to home buyers with a teaser rate they could barely afford.<\/p>\n

Well, a wave of these mortgages is still set to reset to higher, even less affordable interest rates that could push even more homeowners into default.<\/p>\n

Markets have begun to freak out about it again, as D-Day approaches:<\/p>\n

Research Recap:<\/a> Investors’ default rate forecasts for collateral in nearly all classes and vintages of U.S. residential mortgage-backed securities have risen dramatically in Standard & Poor’s Fixed Income Risk Management Services’ latest quarterly survey.<\/p>\n

[S&P:] “Twelve-month default rate expectations on certain U.S. RMBS collateral have doubled since the previous quarterly survey<\/strong>, with U.S. 2007 Alt-A pay option ARM RMBS collateral default rate predictions rising to 25% from 12% polled in Q3.”<\/p>\n

Read more here ><\/a><\/p>\n

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