Most CDPCs will keep their top rating, Moody's indicates

By Michael Peterson

Monday, February 16, 2009

Moody's says that it expects to affirm the ratings of most of the credit derivative product companies it rates, after applying its updated synthetic CDO methodology to these companies

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Comment by: Anonymous. Posted 15 years ago [2009-03-11 10:30:57]

Fair comment below; But beyond a different set of rules and leverage levels btw CDPCs and Monoliners there is something more fundamental going on here; That appears to be the current few survivors in the former did not stray from a single risk strategy of conservative and senior corporate portfolios with high levels of subordination while the latter generally went long multiple asset classes (munis, consumer ABS, ABS CDOs, TRUPSs, corps); Leverage and co-mingled asset class errors is one take away here, whether a Monoliner or any leveraged player.

Comment by: Anonymous. Posted 15 years ago [2009-02-20 18:38:59]

This is superior to the ratings performance of the monolines....it looks like the models/methodologies used to rate the monolines were not consistent with those used to rate the CDPC's - but they are essentially in the same business.

CLOs

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