Alt A Facing Rapidly Rising Defaults, St. Louis Fed Study Finds, But Will it Match Subprime Collapse?
January 15, 2010
Investors holding MBS backed by Alt A loans could be in for rough sledding, according to new research from the Federal Reserve Bank of St. Louis, which finds the sector facing an escalating rate of defaults echoing the performance of the subprime sector. “High default rates on subprime mortgages marked the onset of the current financial crisis,” said Rajdeep Sengupta...