Other managers of Bottoms, Societies of Risk capital, etc, more aggressive. they tried to obtain, at all costs, yields more discharges, among others reasons because those gentlemen receive bonus of end of year based on the obtained yield. Problem: How to sell MBS of the bad ones to these last managers without one notices excessively that they are incurring excessive risks? 6 Commentary: The complicated thing and, by all means, those of the Savings bank of San Quirze continue doing declarations in Expansion happy and contentments, speaking of the good march of the economy and Social Obra that are doing. Some Investment banks obtained, of the Agencies of Rating a re-qualification (a re-rating, palabro that does not exist, but that serves to understand to us) the re-rating is an invention to raise the rating of the bad MBS, that consists of: i. To structure them in sections, to which they call tranches to them, ordering, from largest to smallest, the probability of a non-payment, and with the commitment to prioritize the payment to less bad. That is to say: I buy a package of MBS, in which they say to me that the three first MBS are relatively good, the three seconds, very regular and the three third parties, frankly bad. This means that I have structured the package of MBS in three tranches: the relatively good one, the very regular and very bad one.

I commit myself to that if does not pay anybody of tranche very bad (or as these gentlemen, if the bad section I incur default), but collection say something of tranche very regular and enough of the relatively good, everything will pay the mortgages of tranche relatively good, and so, automatically, this tranche could be described as AAA.