Will the real Moody's please stand up ?

[Stockolio]

Hehe, I doubt Morgan Stanley is selling swaps anymore, Hubler reference was due to there Q4 bonds performance

 

[Stockolio]

Although to be fair it was the reliance on the rating agency assessment of the AAA leg that screwed him wasn't it?

Indeed, he didn't bother reading the credit scores in the pools, or having a junior spend 20-30 hours to make sure everything is legit, nobody really expected Moody's crookedness tho... I think the fact so many people wanted to buy AAA swaps should of raised some alarms for his team, cause under normal times that's nuts... Microsoft is AAA, buying swaps on there bonds, would be similar to flushing money down the toilet

 

[sle]

Although to be fair it was the reliance on the rating agency assessment of the AAA leg that screwed him wasn't it?

Partially, but mostly it was due to him misjudging the liquidity of the "safe" tranches when the shit hit's the fan.