More analysis from naked capitalism about AIG reveals:

Put another way – if a 2005 high grade deal from one issuer had 80% collateral posting (meaning the counterparty and AIG agreed it was worth only 20% of its original value), odds are high that the other 2005 high grade deals and the 2006 high grade deals are going to get there soon enough[.]

And, referring to the Collateralized Debt Obligations the Federal Reserve “bought” at par value, or 100% on the dollar:

[D]ecision to buy the CDOs, only 19% were rated junk. Now, according to Moody’s, the more conservative of the two ratings agencies, 93% are rated junk.