The ABX index has 20 components in it and tries to reflect the value of complex pooled assets that have been securitized and traded between 16 of the largest banks. This is a small world specialized market, but very important to showing what is going in the world of more exotic forms of u s debt. I wrote about this awhile back and said it would be getting worse. It is. Here are 2 pictures. The first picture is for junk rated AAA just like US govt. bonds. The second picture is for the really toxic debt rated BBB. It isn't pretty. Basically a loss of 7% and 45% respectively. Hmm a few more hedge funds are facing some real problems and the CDS and guys aren't happy either. Considering that some of these guys will leverage this stuff 5-20 times.