Alternative-A or Alt-A mortgages are those borrowings from borrowers who are more credit-worthy than subprime borrowers, but for which there remains substantial credit risk.
In order of credit-worthiness, the ranking is:
- Prime
- Alternative A
- Subprime
2008-08-13
Remnants of the mortgage mess
J.P. Morgan Chase & Co. announced that it has written off more on its investment in mortgages that are Alt-A and subprime loans: http://online.wsj.com/article/SB121857659540634603.html?mod=us_business_whats_news. These write-downs are in addition to the substantial write-downs announced for the prior quarter.
Alternative-A or Alt-A mortgages are those borrowings from borrowers who are more credit-worthy than subprime borrowers, but for which there remains substantial credit risk.
In order of credit-worthiness, the ranking is:
Alternative-A or Alt-A mortgages are those borrowings from borrowers who are more credit-worthy than subprime borrowers, but for which there remains substantial credit risk.
In order of credit-worthiness, the ranking is:
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