Tuesday, April 1, 2008

Are Asset Backed Securities Oversold?

The ABX indices


is probably oversold at this point. While I don't have the models to verify the risk analysis, the investment banking community is claiming that current prices anticipate a 75% defaul rate in the BBB rated securities. I'm guessing that these securities are oversold, any buyers.

1 comment:

Witness142 said...

I just bookmarked your blog. I read it when I get the time. Now's probably a good time to watch how an economy behaves when the brakes fail. Keep on blogging....