You don’t hear much about the ABX and CMBX indices any longer. The last ruckus over these came about six months ago when the spinners tried to tell us that they really did not portray the true value of the market bla bla bla. Well, it looks as though Markit was accurate after all.
To be honest, I don’t track these every day but do go in once a week or so. I used to post ABX prices regularly because they seemed to be a leading indicator to credit market disruptions. So I went back and reviewed this yesterday to see if Paulson’s speech yesterday abandoning the buying of distressed assets for now had any impact. Why, yes it did. The ABX made a clean sweep low yesterday.
This surely does not look like a market about to be bought anytime soon. Asset prices are continuing to tumble and this market continuing its downward trajectory. All of these prices are simply amazing.-Best, Mr Mortgage
Below are two charts of the above data. The top is second half 2007 AAA highest grade paper at 41.83 cents and and the second is BBB- lowest grade at 4.27.
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