Financial Times FT.com

Insight: Triple A prices are out of sync

By Gillian Tett

Published: May 1 2008 17:13 | Last updated: May 1 2008 17:13

Why have the prices of triple A mortgage-linked securities slumped so dramatically this year? That question has recently caused anguished debate in the banking world.

After all – and as I pointed out in an earlier column – as the credit turmoil enters its ninth month, it has become painfully clear that it is not the behaviour of risky debt, such as BBB-rated securities, which is currently causing the most grief.

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