Since adjusting its excess spread assumptions earlier this year, several RMBS-backed CDOs have priced sans a rating from Moody's Investors Service. While in some cases market sources noted the lack of a Moody's rating created an arbitrage opportunity, other market sources speculated that Moody's inability to rate those deals was another unintended consequence of its enhancement adjustment.

The Moody's CDO group released a special report last week putting to rest the perception that Moody's was unable to rate certain CDOs due to non-Moody's rated assets being included in those CDOs.

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