Some $27bn of securitisations was restructured in the first half of 2009, 50% more than in all of 2008, according to Barclays Capital. The transactions involve taking the triple-A-rated slice of an asset-backed security, often a mortgage bond, that’s in danger of a downgrade and shifting a percentage of the underlying assets into a new subordinated, or mezzanine, tranche. This reinflates the credit cushion supporting the senior slice which, although it becomes smaller, can therefore retain a triple-A rating.

13 Jul 2009 -

Re-do-do?