ABX, CMBX indexes rise on Goldman, Lehman results
NEW YORK, March 18 (Reuters) - Key indexes that track bonds tied to subprime mortgages and commercial real estate loans rose on Tuesday as reassuring results from Goldman Sachs Group Inc (GS.N) and Lehman Brothers Holdings Inc LEH.N lifted stocks, according to market sources.
The "AAA" tier of the ABX 2007-1 index, which tracks subprime loans made in 2006's second half, rose to 56.25 from 54.45 on Monday, returning to Friday's levels, a market source said.
"We're actually up anywhere from 1.5 points to 2.25 points at the top of the capital structure," the source said, referring to higher-rated ABX indexes.
"Lehman and Goldman, their earnings," the source said. "I think that's pretty much it."
The so-called yield spread premium on the top-rated CMBX-4 index of commercial mortgage-backed securities tightened about 30 basis points to around 230 basis points over interest-rate swap rates, according to a different source. (Reporting by Neil Shah; Editing by Theodore d'Afflisio)
