Not sure if that is Tad Philipp enjoying his new found freedom on the buy side, or Nick Levidy chasing a couple of the weaker AAA
Moody's is going to whack AJs down half a dozen notches over the next couple of months according to a release to day.
the junior Aaa-rated classes, to be downgraded by four to five notches on average.
Expect losses of just 5% on average (seems low).
Moody's generally rated conduit and fusion transactions from 2006 through 2008 to an expected loss of about 2%, but now expects that deals from these vintages will experience losses of approximately 5% on average.
Credit problems on the horizon? Who'da'thunk...
"Early in the current economic crisis, our biggest concern was the impact of a liquidity crunch on commercial real estate," says Moody's Senior Vice President, Michael Gerdes. "However, Moody's now expects a significant overall decline in property cash flows as a result of a higher incidence of tenant defaults and bankruptcies and a sharp decline in lease renewal rates."