As I’d mentioned in a post one week ago, the ABX indices were hitting lows. Today I checked again, and every single price is at all time lows.
The ABX indices by markit are based on credit default swaps (CDS) for specific tranches of sub-prime mortgage backed securities (MBS). (From Calculated Risk, check this post)
More losses to come? I would imagine the people getting really hit now the AAAs – the 07-2 index has gone from 50 down to 36 in a month or so. Even the CMBX – an index based on Commercial MBS, is at horribly bad levels. (High is bad for CMBX, which is quoted as a spread, and is at all time highs everywhere)
