sorry but subprime debt are people who are bad credit risks, they can never be termed triple AAA rated. Companies that never missed a payment, such as the auto companies have their debt rated in the B’s now, and that’s what’s called junk bonds. A subprime consumer isn’t even close to a b.
The fact that people packaged a bunch of high risk loans together may reduce the possibility of a 100% loss, but it’s not even close to AAA.
No. Those are subprime borrowers who have not missed or been late on a single payment.
These loans are often packaged and sold before payment starts. And if they are such great credit risks, why won’t anyone buy these securities? Why are defaults so high? Because it’s AAA?