Just from eyeballing the graphs, we see that AAA has declined to less than 70%, AA to less than 40%, A to 25%, BBB to 20% and BBB- to about 19%.
Tuesday, November 20, 2007
UPTICK OVER, RESUME DIVE
The ABX home-equity indices are returning to Dive-Mode. In case you're wondering how to interpret these numbers, Nomura Securites gives a pretty good explanation, mostly in ordinary English. The numbers in the graph below are how much the underlying assets will be devalued. Thus, if something is trading at 75%, the market thinks the underlying assets are only worth 75 cents on the dollar. If its trading at 25%, then the market thinks the underlying assets are only worht 25 cents on the dollar.
Just from eyeballing the graphs, we see that AAA has declined to less than 70%, AA to less than 40%, A to 25%, BBB to 20% and BBB- to about 19%.
Just from eyeballing the graphs, we see that AAA has declined to less than 70%, AA to less than 40%, A to 25%, BBB to 20% and BBB- to about 19%.
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