subprime mortage woes...

It relects the fallibility of human beings, frauds...I am seeing it is spreading into other credit products, such as ABS backed by these subprime bonds and CDS supported by ABS. Citigroup accepted last Friday that its funds clients will suffer the loss due to exposure to subprime mortgages. Also, last week high quality ABS AA(?) has seen spread widening. Usually ABS BBB- are supported by subprime mortgages. The movement in ABS AA reflected the spillover effect from subprime mortage. Why? next time...