Mortgage Market Quote du Jour

Here is the mortgage market quote of the day:

The CDO mess has punctured the structured finance market’s former central conceit: that the ratings on which it is based are a good measure of underlying risk.

Structured finance product ratings may be a good measure of many things — like next week’s weather, or maybe hemlines, or brokerage earnings — but a useful measure of risk they are not.

[via Breakingviews]