New Bombs to Hit The Markets: Commercial Mortgage Based Securities And Municipal Bonds

To combat the terrible flaws with credit-risk agencies a new rating agency "on steroids" is being launched. The founder, Jules Kroll, speaks about this and a couple of interesting bombs about to hit the market:

1. Commercial Mortage Backed Securities problems are only beginning to hit the fan, as sub-prime ones were last year.

2. Municipal bonds were mostly rated a long time ago, many tears ago, now municipalities had had a significant drop in revenue based since then (tax base eroded in virtually all jurisdictions, business is down). Municipal bonds are about to get hit hard.

Watch BNN video. (part 2)