Has the Mortgage Bond Market Capitulated? Rush to "safe" assets. Going on 8 months of straight selling in CDO's. ABX indices totally trashed with BBB's in single digits and AAA in the 50's. Leveraged Fixed Income players blown out on margin calls. Almost all Mortgage companies out of business or near zero. Banks hoarding cash. Walking away from Mortgage market. Financials in 9th month of decline. SIV's forced back on bank balance sheets. Bond Insurers, Rating Agencies credibilty questioned. The hot new themes are Risk Aversion and Deleveraging. Cash Players entering market - Pimco, Wilbur Ross, Buffett. Capital raised, New funds open to buy "distressed" debt. opinions?