The 'Race to Zero' on the ABX Continues ...
There is no other way to say it - things are getting ugly over on the ABX indices. Of the 20 issues traded, 17 settled at new all-time lows today. SEVENTEEN! I had to screencap the settlement chart for posterity's sake:
If you're curious to see what's taking place in CDS prices in even the most senior tranches, here you go -- from ABX-HE-AAA 07-2:
Good thing Halloween is around the corner, because what's taking place on the ABX right now is just plain S-C-A-R-Y. And it's not getting any better on the TABX indices, either.
(HW note: For those that don't know, the ABX indices generally track against the U.S. subprime RMBS market, while the TABX indices are generally used as a proxy for what's taking place in the CDO marketplace.)
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- Current Chg.
- NASDAQ 3423.55 0 ^ixic
- S&P 500 1651.81 12.77 ^gspc
- Volatility Index 16.61 -0.19 ^vix
- KBW Mort. Financial Index 31.54 0.19 ^mfx
- MSCI US REIT Index 966.63 4.46 ^rmz