Is the subprime trade over?

Tue Oct 30, 2007



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...

TAKE A FREE TRIAL

The full contents of this article are available to active AR subscribers and trialists only.

To continue reading please,
take a free trialsubscribe or log in to AR.

Subscribe

Subscribers have unlimited access to all current and archive content. Start your subscription today - click on the button below.

Subscribe now