Bonds

Moody’s: Subprime Exposure of Financial Guarantors ‘Well Contained’ — Maybe 

In a new report released today, Moody’s Investors Service said that it expects rated financial guaranty insurance companies to be able to ride out the subprime mortgage storm. Citing credit enhancement levels exceeding currently projected losses, Moody’s said the “risks presented by the direct insurance of subprime RMBS transactions will likely be well contained.”