WSJ: Bloodbath in ABX
July 17th, 2007 by Stephen RomanFrom the MarketBeat Blog:
Worries about subprime lending drove the riskiest tranche of the closely-watched subprime ABX derivative index to a record low of 44 cents on the dollar today — understandable, given everything that’s gone on in the subprime sector.
But higher-quality tranches of the ABX also took an ugly haircut today — the AAA-rated section of the index fell to 95 from about 100, while the AA-rated tranche fell to 88 from 100, according to Markit. The A-rated tranche is down to 70 from 90 a month ago, Andrew Lahde, managing partner of Lahde Capital Management, a hedge fund in Santa Monica, Calif., told Dow Jones Newswires.
And all of this happened without any news to drive the market.
The post also linked to some scary charts from Barry Ritholtz one which we’ve posted below. If I was playing Line Rider I would be intimidated, if I was long I would start putting my resume together. See the rest of the charts he posted and comments here.
Posted: July 17th, 2007 under Americas, General, hedge funds, housing bubble.
Comments: 1
Make your Money Go Further
Our monthly reports tell you what countries and currencies offer the best deals. Travel and buy smart!