ABX Continues Its Steady March South

http://www.markit.com/information/products/abx.html

Just a slight observation. While the Dow surged ahead 1.5% and most financials tacked on 3 to 4% at least, the ABX indexes (series of credit-default swaps based on 20 bonds that consist of mortgages, basically measuring the risk underlying mortgage securities) hit new lows in 18 of 20 issues today. Two things matter for more financial writedowns. Mark to models which is based on ratings (Moody's and S&P) which everyone from Washington, to Wall Street is desperately trying to hide the man behind the curtain and things like the ABX and LCDX. Those two are not looking good.