Global Diversified Investment Grade Income Trust - Recent announcements by Moody's on residential mortgage-backed securities



    MONTREAL, Oct. 18 /CNW Telbec/ - Global Diversified Investment Grade
Income Trust ("Global DIGIT") (TSX: DG.UN) announces that, on October 11,
2007, Moody's Investors Service Inc. ("Moody's") issued a press release
disclosing that Moody's has downgraded $33.4 billion of securities issued in
2006 and backed by subprime first lien mortgages, representing 7.8% of the
original dollar volume of such securities rated by Moody's.  Of the
$33.4 billion downgraded securities, $3.8 billion remain on review for further
possible downgrade.  Moody's has also affirmed the ratings on $258.6 billion
of Aaa-rated securities and $21.3 billion of Aa-rated securities, representing
74.7% and 52.0% of the original dollar volume of such securities rated in
2006, respectively. In addition, another $23.8 billion of first-lien RMBS were
placed on review for possible downgrade, representing 5.6% of the dollar
volume of subprime first-lien securities rated in 2006, including 48 Aaa-rated
and 529 Aa-rated securities.
    As at October 3, 2007, the reference portfolios of Global DIGIT contained
8 of the securities downgraded by Moody's.  Those securities are identified in
the table below.

    
    -------------------------------------------------------------------------
                                             Port-  Rating  Rating  Exposure
    Issuer name     Series     ISIN          folio  Before  Now     ('000)
    -------------------------------------------------------------------------
    ARGENT SECU-
    RITIES Inc.     2006-W1    US040104RM55  2      A2      A3      $ 41,578
    COUNTRYWIDE
    ASSET-BACKED
    CERTIFICATES    2006-8     US045427AJ09  2      A2      Baa2    $ 74,247
    GSAMP TRUST                US362334PR94  2      A3      Ba3     $ 47,518
    HOME EQUITY
    ASSET TRUST     2006-4     US437084VV50  2      A2      A3      $ 74,247
    JP MORGAN
    MORTGAGE
    ACQUISITION
    CORP                       US46626LJW19  2      A3      Baa3    $ 41,578
    MASTR ASSET
    BACKED SECU-
    RITIES TRUST    2006-NC1   US57643LNL61  2      A2      A3      $ 74,247
    MORGAN STANLEY
    ABS CAPITAL I   2006-WMC2  US61749KAL70  2      A2      Ba2     $ 74,247
    SG MORTGAGE
    SECURITIES
    TRUST           2006-FRE1  US81879MBC29  3      A3      Ba3     $ 35,396
    

    The exposure of Global DIGIT to each security, as shown in the last
column of the table, is protected by first loss amounts of $215,994,000 for
the whole of portfolio 2 and $50,091,000 for the whole of portfolio 3. 
Further, once the first loss amount has been absorbed, the exposure of Global
DIGIT to losses is limited to $30,374,000 for the whole of portfolio 2 and to
$30,368,000 for the whole of portfolio 3. All of these amounts can be
converted on a unit basis by dividing the relevant amount by the number of
outstanding units (9,751,054).  Any loss incurred on these exposures would
reduce the accreted value per unit which stood as at June 30, 2007 at $9.71 as
reported in the Management Report on Fund Performance.
    As the reference portfolios are actively managed, it is possible that the
amounts of the exposure to each security may change.

    About Global DIGIT

    Global DIGIT provides an economic interest in a mezzanine tranche of
credit default swap agreements in respect of portfolios of mortgage-backed
securities, asset-backed securities, structured finance securities and
synthetic corporate exposures.




For further information:

For further information: François Rivard, (514) 879-6405,
http://info.fbn.ca/trusts

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Global Diversified Investment Grade Income Trust

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