mr. froeba, i have a questio but it'll be the second round. >> thank you. mr. present joynt, one of the issued that was identified by the sec staff in last year's report was that the growth and complexity. what steps have you taken to ensure the next complex product, and there will be some, that is sold does not outpace your firm's analytic capabilities? >> complex question. but in today's market environment, there's very little in the way of new complex instruments being issued. so in some way we have sort of ti to reassess. some of the most complex instruments in the markets cddos, i think we took six months to analyze before decided we could not rate them. that was a vy difficult process of analyst, modelers, and experienced people with judgment trying to think about the subjective aspects of the risk. it was mentioned earlier, ratings had affected the probability of loss, rating were not and have not been structured to address that. maybe they need to be. we're working on that now as well. so i would say we have a healthy degree of skepticism. today we have

mr. mark froeba. is the principal at pf2 securities evaluations. ye sir. senr vice president with moody's derivative group and is vice president and senior credit officer at moody's. thank you very much. mr. joynt. your testimony please. >> could you turn the microphone on, please? and lean in. >> thank you, senator reed. members of the committee think of it opportune to appear at the hearing today. i would like to spend a few minutes am writing my prepared statement. while overall macroeconomic coitions remain difficult, it seems the period most intense markets stressed as fast. this is due both to a variety of government initiatives, here and abro, and at restoring market stability as well as actions taken by companies and individuals to shorep their balance sheets and reduce risk. having said that, important sects in the fixed income market remained effectively closed in certain classes of just commercial mortgage-backed securities are have greater understand on their asses. during this time the focus of has been into letting a broad range of initiative