Who wrote this article?

Deepak Shenoy, Capitalmind's research team.

ABX and CMBX: Meltdown

13 Nov 2008Deepak Shenoy1 min read

Quick Facts

What is "ABX and CMBX: Meltdown" about?
What category is this article in?: Commentary
Who wrote this article?: Deepak Shenoy, Capitalmind's research team.
When was this article published?: Published 13 November 2008.
How long does this article take to read?: 1 min read
What topics does this article cover?: ABX, Crisis 2008

As I’d mentioned in a post one week ago, the ABX indices were hitting lows. Today I checked again, and every single price is at all time lows.

The ABX indices by markit are based on credit default swaps (CDS) for specific tranches of sub-prime mortgage backed securities (MBS). (From Calculated Risk, check this post)

More losses to come? I would imagine the people getting really hit now the AAAs - the 07-2 index has gone from 50 down to 36 in a month or so. Even the CMBX - an index based on Commercial MBS, is at horribly bad levels. (High is bad for CMBX, which is quoted as a spread, and is at all time highs everywhere)