(Bloomberg) -- Investors fleeing even top-rated
subprime-mortgage securities are wrong to worry they may
default, according to a Bear Stearns Cos. analyst.
Even if they're right to feel ratings firms mistakenly
provided AAA assessments to some bonds from collateralized debt
obligations that will lose principal, the mortgage-bond CDO
securities are ``more fragile'' than the AAA pieces of subprime-
mortgage deals, Gyan Sinha wrote in a report yesterday. The
securities also have more ``cushion'' against likely losses than
AAA bonds backed by home equity loans, he said.
Read more at Bloomberg Bonds News
subprime-mortgage securities are wrong to worry they may
default, according to a Bear Stearns Cos. analyst.
Even if they're right to feel ratings firms mistakenly
provided AAA assessments to some bonds from collateralized debt
obligations that will lose principal, the mortgage-bond CDO
securities are ``more fragile'' than the AAA pieces of subprime-
mortgage deals, Gyan Sinha wrote in a report yesterday. The
securities also have more ``cushion'' against likely losses than
AAA bonds backed by home equity loans, he said.
Read more at Bloomberg Bonds News
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