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To: Broken_Clock who wrote (340689)	8/12/2007 8:34:17 PM
From: Giordano Bruno	Respond to of 436258

Housing Futures & Derivatives - All ABX Tranches Set New Lows The ABX Index is a series of credit-default swaps based on 20 bonds that consist of subprime mortgages. A decline in the ABX Index signifies investors sentiment that subprime mortgage holders will suffer increased financial losses from those investments. There are four ABX series available - 06-1, 06-2, 07-1 and 07-2 - which correspond to when subprime mortgages were issued and securitized. The 06-1 corresponds an ABX index launched in the first half of 2006. Each series is cut into tradable tranches that are valued by their order in the financial recovery from a subprime mortgage investment. The tranches are AAA, AA, A BBB and BBB-. Last Friday, are tranches in all series settled on the life-of-contract lows. Source: Markit. Looks like we hit the lows, no where to go but up from here. -g-