Sub-prime takes derivatives hit

Fresh turmoil has hit the US sub-prime mortgage sector after a key indicator of the value of derivatives based on the risky housing loans fell to a new low.

The ABX sub-prime index, which tracks the cost or spread of credit derivatives on 20 bonds secured by sub-prime mortgages and home-equity loans, plunged to 61 cents on Friday after trading at above 97 cents at the start of the year.

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How Trump Got His ‘Big, Beautiful Bill’ Across the Finish LineExternal link

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