Subprime ABX Deriv Index Hits New Low At 44 Cents Vs 46 Mon
Last update: 7/17/2007 1:49:42 PM
By Anusha Shrivastava
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--The riskiest tranche of the subprime mortgage-based derivative index, the ABX, hit another low Tuesday.
The BBB- tranche was quoted at 44 cents on the dollar early afternoon, according to Norman Cerk, partner at Balestra Capital Ltd., a hedge fund.
"It's probably because of the home builders' numbers," Cerk said, referring to the July home builder data released earlier Tuesday.
Home builder confidence, as measured by the National Association of Home Builders index, fell to 24 from 28 in June, NAHB said. The reading of 24 was the lowest since January 1991.
"The bottom line is that the single-family housing market is still in a correction process following the historic and unsustainable highs of the 2003-2005 period," said David Seiders, chief economist at the National Association of Home Builders.
The index's BBB- tranche had opened at 46 cents this morning, unchanged from Monday's close, according to Alex Pritchartt at UBS.
The higher-rated AAA tranche is trading at 95 cents, according to Cerk.
-By Anusha Shrivastava, Dow Jones Newswires; 201-938-2371; anusha.shrivastava@dowjones.com
(END) Dow Jones Newswires
July 17, 2007 13:49 ET (17:49 GMT) |
