Thursday, 19 July 2007

Subprime Bonds Created This Year Are No Better Than Last, New ABX Suggests

(Bloomberg) -- Subprime mortgage securities created
in the first half of 2007 are about as likely to default as those
made last year, according to a new series of benchmark credit
derivatives.

``ABX'' credit-default swaps linked to 20 subprime securities
rated BBB- and created during the first half of 2007 traded for
the first time today at a mid-price of about 51.5, translating to
an annual cost for default protection of more than $1.9 million
per $10 million of bonds, according to Goldman Sachs Group Inc.


Read more at Bloomberg Bonds News

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