(Bloomberg) -- The perceived risk of subprime-
mortgage bonds surged today, prices of benchmark derivatives
contracts show.
An index of credit-default swaps linked to 20 securities
rated BBB- and created in the second half of 2006 fell about 8
percent today to a new low of about 45, according to Deutsche
Bank AG. The ABX-HE-BBB- 07-1 index has dropped by more than half
since January, reflecting growing expectations of defaults on the
bonds. Most other ABX indexes also hit new lows, traders said.
Read more at Bloomberg Bonds News
mortgage bonds surged today, prices of benchmark derivatives
contracts show.
An index of credit-default swaps linked to 20 securities
rated BBB- and created in the second half of 2006 fell about 8
percent today to a new low of about 45, according to Deutsche
Bank AG. The ABX-HE-BBB- 07-1 index has dropped by more than half
since January, reflecting growing expectations of defaults on the
bonds. Most other ABX indexes also hit new lows, traders said.
Read more at Bloomberg Bonds News
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