Tuesday, June 26, 2007

US loan derivative index up slightly, may stabilize

(Reuters) - "In our opinion the LCDX pressure should abate, and the
index should not sell-off more than cash loans or the CDX HY," JP Morgan analyst Eric
Beinstein said in a report.




"If the LCDX trades within 30 to 40 basis points of the
cash loan spreads, investors may be willing to buy risk through
LCDX," Beinstein said. The basis, or difference between the
index and cash loan spreads, was recently around 50 basis
points, "thus the LCDX should begin to see support," he said.


Read more at Reuters.com Bonds News

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