Tuesday, July 17, 2007

Risk of Subprime Bonds Rises for a Second Day, Default Swaps Index Shows

(Bloomberg) -- The risk of owning bonds backed by
subprime mortgages rose a second day after surging yesterday
amid concern that losses will accelerate.

An index of credit-default swaps linked to 20 securities
rated BBB- and created in the second half of 2006 fell 1.2
percent to 44.75 at 2:57 p.m. in New York, data from broker GFI
Group Inc. show. The ABX-HE-BBB- 07-1 index dropped 7.5 percent
yesterday to 45.28, according to London-based Markit Group Ltd.


Read more at Bloomberg Bonds News

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