ABX Indices stuck @ lows

Discussion in 'Trading' started by Cdntrader, Aug 24, 2007.

  1. back to lows then bounced again. double bottom?
    #61     Aug 26, 2008
  2. Cutten


    At some point these securities will be an incredible buying opportunity.

    Does anyone know an easily accessible way for a non-institution to trade these indices or any closely correlated securities?
    #62     Aug 26, 2008
  3. mokwit


    Agree, if you know what you are doing there has to be mispricing in the better securities, but maybe mispricing in the worse ones also. My guess is that distressed investors are already on the case and know which ones to bid for - just a matter of the bid being accepted.

    Has to be some kind of super diversified exposure so gains in the ones that are mispriced offset losses from the ones that fail. Only problem is that distressed investors will probably bid for individual good tranches leaving any diversified vehicle with the worse stuff. If real value is 30% that is only at max ~300% gain on those that rebound - likely they will not recover to par as even the good tranches will have losses. If bought at 5% of par there is a 20x max recovery potential in the good tranches offset by an unknown bankruptcy rate.

    Might be better off buying a super diversified portfolio of homebuilders and small regional banks.
    #63     Aug 26, 2008

  4. AAA's breaking out to 3 month highs. Maybe its Paulson pumping ??

    the rest are mostly stuck near lows as per usual.

    ALT-A storm seems to be gathering.
    #64     Sep 13, 2008

  5. AAA heading back down. No reaction to possible bailout plan.
    #65     Sep 18, 2008
  6. Daal


    abx will turn when victor pandit throws the towel and sells 80% of the company to some rich oil dude :p
    #66     Sep 18, 2008
  7. AAA trending higher while everything below is pretty much waiting on bailout from the looks of it.
    #67     Sep 27, 2008

  8. Seeing some upside movement now all the way down to BBB's.

    One can only assume we have seen the lows until Paulson runs out of cash.:D
    #68     Oct 5, 2008
  9. #69     Oct 25, 2008
  10. Daal


    #70     Oct 25, 2008