meaning of ABX index

ABX index meaning in Law Dictionary

n list accustomed derive the worthiness of a mortgages subprime. A credit standard to change can be used to simply help people that have weak credit. It has four series each containing 20 bonds. This informs the organization if marketplace is increasing. Permits a measure of forecast to avoid loss. The same term for his is known as an Asset-Backed Securities list.

ABX index meaning in Business Dictionary

regularly derive the worthiness of this subprime home loan investment market. The index makes use of a series of credit default swap contracts to determine the total worth of mortgages built to consumers with weak credit. It's composed of four show, each with 20 bonds that contain groups of subprime mortgages. Applying this list, that will be an accumulation of mortgages made at differing times, trading institutions are able to see whether the market of these securities is worsening or enhancing. Also they are able to utilize the list to hedge against losings on subprime mortgages they may hold. Also known as Asset-Backed Securities Index.