The ABX Index is a series of credit-default swaps based on 20 bonds that consist of subprime mortgages. ABX contracts are commonly used by investors to speculate on or to hedge against the risk that the underling mortgage securities are not repaid as expected. ABX has been unable to launch a 2008 series yet due to too little new RMBS issuance.
Today, according to Markit, 12 of the 20 tranches available for trading made and settled on new lows. Four of the 20 tranches settles near their low settlements. The AAA tranche of the 06-1 series settled at 93.54%... it is the only tranche that has retained the best value to long investors. The AAA tranche of the 07-2 series is the lowest AAA, settling at 63.53%, a new low.
Housing asset value indexes like Radar logic and S&P/Case-Shiller are showing the five year forward housing prices nationally falling about another 20% from current index levels.