It's tempting to ignore Moody's bank downgrades, which are affecting the ABCP market (see story). They were late, heavily broadcast in advance and came from an organization with a lot to prove after missing key elements of the credit crisis.

At Morgan Stanley, which Moody's lowered two notches, the ratings move was characterized as "backward looking." More broadly, the bond market appeared to agree; in the day after the ratings agency announcement, prices of bank debt rose and yields fell.

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