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Commentaries — July 30, 2007

What Turns Credit Around? The ABX indices are grotesquely overpriced when looking at what type of housing declines they imply. Any relief rally in the ABX indices could turn into a vertical rise and cause a big positive reaction in high-yield spreads. Such a rise would be perceived as a signal that any credit stress… Continue reading Untitled

Open What Turns Credit Around?
The ABX indices are grotesquely overpriced when looking at what type of housing declines they imply. Any relief rally in the ABX indices could turn into a vertical rise and cause a big positive reaction in high-yield spreads. Such a rise would be perceived as a signal that any credit stress is over and ironically this same rally could cause the greatest pain amongst hedge funds.