With some triple-B tranches of the ABX Index now trading in
the low 20s, is the subprime trade winding down?
As early as July, John Paulson's Paulson & Co., which
has made a fortune this year by shorting subprime mortgages,
decided that initiating new short bets in the subprime market
had become less attractive.
The firm in July launched Paulson Credit Opportunities III,
its third in a series of funds dedicated to shorting mortgages,
only to shut the fund down later...