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Home » Store » News » ABX Seen as Faulty Barometer of Subprime Prices

ABX Seen as Faulty Barometer of Subprime Prices

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The index established to track the value of subprime mortgage-backed securities does not appropriately account for liquidity risk and risk appetite, according to analysts at the Bank for International Settlements. The analysts’ research follows similar criticism of the ABX index by other MBS analysts, but the indices remain the only widely available gauge of subprime valuations. The ABX...
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