The crisis that began in structured products built around subprime loans has now spread to almost every financial product and market. Front-page headlines talk of stock market falls around the world in response to the liquidity crunch and investors' increasing risk aversion. But how has the crisis progressed in the market that spawned it - the RMBS market?
What started at the triple-B rated level has moved up the capital structure all the way to triple-A rated paper (see chart opposite). The