ABX-HE-BBB 06-2

This is a gragh of the ABX-HE-BBB 06-2 index. The ABX is an index of securitized mortgages and the triple "B" denotes its rating (triple "A" would be the highest.) Also, the "06" means it is comprised of mortgages written in 2006. As one can see, the index started to weaken in early December and fell off of a cliff last week. The dive was reportedly due to the demise of sub-prime lender Own-It and broader concerns many sub-prime lenders are going to fail very soon.