Fitch Solutions has reported that prices for sub-prime credit default swaps (CDS) rose for the third consecutive month, as the outlook for market conditions remains positive for further price increases. This is attributed to favorable market conditions thanks to lower defaults rates, deliquency rates and prepament rates. Click to continue

The Securities and Exchange Commission (SEC) charged Goldman Sachs & Company and one of its vice presidents for defrauding investors by misstating and omitting key facts about a financial product tied to sub-prime mortgages as the U.S. housing market was beginning to falter. The SEC alleges that Goldman Sachs structured and marketed a synthetic collateralized debt obligation (CDO) that hinged on the performance of sub-prime residential mortgage-backed securities (RMBS).Click to continue