We are open for new CLO business, says S&P

Standard & Poor’s has denied suggestions that it is unwilling to rate new CLOs while it is busy downgrading existing deals

Comment by: Anonymous. Posted 14 years ago [2009-10-29 21:00:09]

S&P is much less willing to rate any tranches in CDO land 'AAA'. They are scapegoating CDO's intentionally for the to deflect the glare from the real problem child - RMBS Ratings - because RMBS is a much larger market going forward than CDO's. CDO's will be fine if the underlying ratings on the collateral held by CDO's are accurate to begin with.