This seems sub-optimal
According to da S und P.
Standard & Poor's said delinquencies of most home-related loans continued to climb in July, as the ratings agency said the 2006 and 2007 issuance years continued to perform poorly.
The agency released last month's results for residential mortgage-backed securities created in 2005 through 2007 from home-equity lines of credit, closed-end second liens, prime jumbo mortgages, Alt-A and subprime loans.
S&P said as of the July distribution date, delinquencies on subprime deals were 38% of current total pool balances for 2005 and 41.7% and 31.3% for 2006 and 2007, respectively. Those rates were up 2% to 7% compared with June.
I wonder how many tranches of this stuff S&P rated AAA in the past...