Alt-A Loans Join Subprime in Default

Alt-A loans are technically prime loans, though they are low quality prime loans that bridge the gap between sub-prime and regular prime loans, and their performance tanked in May, with delinquencies greater than 60 days, roll rates^*, and loss severity all rising.

There never was a sub-prime crisis. There is a housing crash.

^*Roll rates capture the number of loans moving from current to delinquent each month.