Press Release Author = Michael Blackburn/ Perfect Home Living
Industry = Financial
Press Release Summary = Key derivative index for Sub-prime bonds hits record low.
Press Release Body = Salt Lake City, UT / Press Release / -- Like a dormant volcano that suddenly spews ash and lava the loosely regulated sub-prime mortgage market is a sleepy giant no more. Late last week the U.S. sub-prime lending market which has been forecasted by some as in recovery stages proved once more that the depth and scope of damage caused by sub-prime lending has yet to be truly realized.
Joe Astornia, director of the securitization research at Barclays Capital, said \"People are really trying to digest last week\'s news and there was certainly plenty of it to go around, whether it was the Mortgage Bankers\' Association data or the Moody\'s downgrades.\"
MBA\'s data last week showed that a record number of borrowers were set to lose their the homes to foreclosure while delinquency rates for sub-prime home loans roared from 11.5 per cent to 13.8 percent.
In a further drift from main stream thinking, this past Friday, rating agency Moody\'s cut the ratings of 131 bonds backed by sub-prime home loans stating reasons such as high levels of defaults and late payments on underlying mortgages. In addition to the downgrades Moody\'s has already made, the ratings agency is currently reviewing 247 bonds including 111 of the bonds it had just downgraded.
The negative headlines of Moody\'s sub-prime mortgage-backed bonds downgrade rifled through the markets as the ABX derivative index, which tracks sub
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2012
