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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: YanivBA who wrote (71406)	10/8/2006 1:45:39 PM
From: zebra4o1	Respond to of 110194

So ABX-HE-BBB-06-2 is based on more recent loans, while ABX-HE-BBB-06-1 is based on older loans? Can we draw any conclusions about why ABX-HE-BBB-06-2 is doing worse? I thought there are typically very small loses in the first year for mortgages - takes a while for problems to develop. So shouldn't ABX-HE-BBB-06-1 be doing worse? Or maybe the 06-1 loans were issued early enough to have some home price appreciation, while the 06-2 loans had home price depreciation. Or maybe it all depends on the details of the individual securities included in each index. Maybe ABX-HE-BBB-06-2 included a stinker.