Perceived Risk of Subprime Loans Increases After Housing and Payment Data

(Bloomberg) -- The perceived risk of owning low-
rated subprime mortgage bonds from 2006 increased amid data
showing further weakness in the housing and mortgage markets,
according to derivatives.

The ABX-HE-BBB- 06-2 index of credit-default swaps on
20 securities rated BBB- and created in the first half of 2006
fell about 1.8 percent today to 62, surpassing a February low
for the first time, according to Deutsche Bank AG. The ABX-HE-
BBB- 07-1 index of bonds from the second half of 2006 fell about
3.3 percent to 56, the seventh new low reached since June 12.


Read more at Bloomberg Bonds News