Subprime mortgages trigger ABX sell-off

The 'other shoe' finally dropped in the US subprime mortgage market in February as a crop of lenders closed shop and major banks revealed they are expecting serious losses in their loan portfolios.

The market had been expecting weakness in the sector this year after delinquency rates on subprime mortgages reached record levels towards the end of 2006. Nonetheless when the latest news hit the market, the impact - most closely felt on ABS derivatives index the ABX - was nothing short of astounding

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

If you already have an account, please sign in here.

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here