Despite a massive runoff, U.S. banks continue to hold $1.7 trillion in private-label MBS on their books and Standard & Poor's estimates additional losses on these mortgage-backed securities could reach $260 billion.

S&P analysts expect to see $165 billion in losses from subprime MBS, $80 billion from Alt-A and $5 billion from prime MBS.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.