Subprime is dead!
http://www.ft.com/cms/s/2/391a0660-7...b5df10621.html
However, interest in newer series’ has begun to fade. “Nobody even trades the 07-2, so why create another one that nobody cares about?” asked one buysider active in the ABX. Added another ABX investor, “I don’t think there should ever be an 08-1 series. Subprime is dead.”
The TABX, which tranches ABX BBB and BBB- pieces and was created to simulate a mezzanine ABS CDO, is already defunct, said Mark Adelson, a securitization consultant at Adelson & Jacob consulting. “The TABX is for all intents and purposes pretty much dead. It’s toxic – nobody wants to touch it anymore,” Adelson said.
The TABX, which tranches ABX BBB and BBB- pieces and was created to simulate a mezzanine ABS CDO, is already defunct, said Mark Adelson, a securitization consultant at Adelson & Jacob consulting. “The TABX is for all intents and purposes pretty much dead. It’s toxic – nobody wants to touch it anymore,” Adelson said.
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