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Moody's Downgrades $33.4 Billion of Subprime Bonds (Update3)

Appeared on October 5, 2007

"Now a CDO manager will have to run the value model and revise it in light of the new evaluation,'' said Joseph R. Mason, associate finance professor at Drexel University in Philadelphia. "The rating agencies are going to have to do the same thing. Now, they're going to have to go back and rerate the CDO and we have not yet seen those results."