Standard and Poor’s has downsized its original estimate of residential mortgage-backed securities placed under review to $7.35 billion from $12.1 billion, reports Reuters. “This is obviously sloppy by S&P,” said Mirko Mikelic, a fund manager at Fifth Third Asset Management. “I don’t think anyone’s doing back flips.” Mikelic added the market has been very sensitive to subprime news.
S&P’s original announcement drove investors to government bonds as a benchmark subprime index fell to an all-time low. “It was an error and we corrected it,” said Adam Tempkin, S&P spokesman. “It was human error. It is what it is.”