Invest Skeptically

FT Alphaville presented some scary charts showing that even older vintage (2004/2005) subprime RMBS have experienced noteworthy foreclosures and delinquencies. A commenter on naked capitalism (who covered the FT Alphaville piece) points out that the high loss severity ratio of 35% stated in the article (and attributed to CreditSights) is influenced by the fact that many older vintage deals have paid down significantly.