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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: Broward Horne who wrote (79336)2/27/2007 9:14:16 AM
From: Wyätt Gwyön  Read Replies (1) of 110194
 
Why the heck isn't anybody talking about the ABX numbers?

they sure are talking about them where i am reading. Grant has been talking about it for months. remember that the ABX index which is really tanking is ABX.HE.BBB-, 2006-02 vintage.


it is not like the entire credit market is falling apart yet. the rest of the credit market is pretty blissfully unaware, corporate spreads (Baa) are at decade lows, as shown in the latest ContraryInvestor. only a few chinks yet in the ABX.HE.AAA


Am I missing something here?

i don't know whether the 50% failure rate is accurate, but you're right that the subprime index is looking very bad as multiple lenders are now going BK and the others are upping their standards. i just think the market is not very concerned yet and will only be concerned when it is too late.

source for quotes: eurobondonline.com
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