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



    MONTREAL, Oct. 18 /CNW Telbec/ - Global Diversified Investment Grade
Income Trust ("Global DIGIT II") (TSX: GII.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
possible further 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.
    The reference portfolios of Global DIGIT II contained as at October 8,
2007 three of the securities downgraded and one placed on credit watch by
Moody's. Those securities are identified in the table below.

    
    -------------------------------------------------------------------------
    Issuer Name      Series    ISIN          Port-  Rating   Rating  Expo-
                                             folio  Before   Now     sure
                                                                     ('000)
    -------------------------------------------------------------------------
    ACE SECURITIES
     CORP.           2006-HE1  US004421WX73  B      Baa1     Ba2     $ 13,674
    HOME EQUITY
     ASSET TRUST     2006-4    US437084VV50  B      A2       A3      $ 3,256
    MORGAN STANLEY
     CAPITAL I       2006-HE2  US617451FA24  B      A2       A3      $ 3,256
    FIRST FRANKLIN
     MTG LOAN ASSET
     BACKED CER.     2006-FF17 US32028KAJ51  C      Aa3      Aa3(*)  $ 6,354

    (*) Security placed on credit watch with a negative outlook.
    

    The exposure of Global DIGIT II to each security, as shown in the last
column of the table, does not have protection from a first loss amount. All of
these amounts can be converted on a unit basis by dividing the relevant amount
by the number of outstanding units of Global DIGIT II (10,392,283). Any loss
incurred on these exposures would reduce the accreted value which stood as at
June 30, 2007 at $9.77 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 II

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




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 II

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