As the holidays and year-end approached, Markit ABX.HE prices remained fairly stable across the entire series. The lone exceptions were in the ABX.HE.AAA and PENAAA. The Markit CMBX indices showed significant improvement. However, the trend in the CMBX has reversed since the beginning of 2010. The more noteworthy story so far in early 2010 seems to be the renewed appetite for RMBS securities by both investors and dealers. Large volumes of bonds traded off of bidlists, with prices rallying by as much as 4-5 points on Prime and Sub-prime ’06-07 paper. All of this price action happened in the first week of Jan, with momentum stalling in the second week a bit under the weight of additional secondary supply.

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