The ABX Index, credit-default swaps based on bonds consisting of sub-prime mortgages, for the BBB- 07-1 tranche is heading lower again to a May 2007 low of 67.21%. This index bounced up to over 73.00% mid-May.
All opinions expressed herein are those of the author, and no statement should be as an offer to buy or sell any futures contract, or security or option or other derivative instrument. Trading of all such futures, securities, options and other derivative instruments entails significant risk which can result in substantial financial loss. Such risks should be fully understood prior to trading.
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