Tuesday, July 10, 2007

Bond bears turn tail in subprime scare

(Reuters) - Credit ratings agency Standard & Poor's stunned markets on Tuesday by warning of possible downgrades to a slew of mortgage-backed debt, boosting Treasuries but sending shivers through the riskier sectors of the fixed-income market.




Even though the economy has bounced back from earlier scares in the subprime sector, which targets borrowers of lower credit quality, this latest bout of jitters should still tamp down yields until the scope of the damage is known.


Read more at Reuters.com Business News

No comments: