ABX and CMBX rallies continue despite general market widening

While other parts of the credit market moved slightly wider yesterday, CMBX and ABX continued their technically driven rally. ABX was quieter than previous sessions, but traders say subprime cash bwics are still trading well and pushing up the market.

 The ABX 06-1 and 06-2 series triple-A were both up another point each on the session at around 36.5 and 73.75 respectively. The off-the-run CMBX1 triple-A moved up to 86.5, with a one point move, equivalent to a 20bp move tighter in spread terms to 273bp. CMBX5 moved less but is now at 75.25.

The US market was generally quieter yesterday on a cautious start to the week, with CDX IG 6bp wider to 149bp.