Bond Market Indices Also in Freefall, Most at All-Time Lows

First, here is the ABX series 2007-2, tracking mortgage bonds issued mostly in the first half of 2007. It hit an all-time low of 64.83 Friday. The index was started in July 2007 at 100.

The 2007-1 AAA series also hit an all-time low on Friday. The AAA series are the most important to track simply because most subprime bonds were rated AAA when they were issued.

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One response to “Bond Market Indices Also in Freefall, Most at All-Time Lows

  1. Should we consider that this may be a market over-reaction towards subprime bonds? Defaults in relation to AA tranches are still extremely rare – would you agree?

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