Exotic mortgages owned by people with good credit fall into the “Alt-A” category. This category is also at risk. It’s just that the risk is relatively lower. Right now, the sub-prime implosion is so spectacular, it attracts all of the attention.
IMO, defaults in the “Alt-A” category will be the “next wave” after the current wave of sub-prime defaults. Stay tuned, there will be more bad news for this category in the months ahead. Here is one article:
