All the excitement about Moody’s "Tipping Point" report [1] may have overshadowed a housing bubble development of potentially great long term significance. In what looked like a routine press release,[2] [3] [4] bond rating agency Fitch announced a new version of its methodology for estimating the risk for things like the MBS bonds that arise out of sub-prime and alt-A mortgages. Let’s take a closer look.
