Thursday, February 19, 2009

CMBX Index & IYR Update…

It was only 12 days ago when I wrote this article on the CMBX index and its effects on IYR… Real Estate, Bubbles, & the CMBX Index – Still Showing Severe Stress…

In that 12 days, IYR has lost 15% of its value and the CMBX indices are now blowing out, with the exception of AAA which doesn’t really exist.

The selling in IYR has not been proportional to the blowout on the CMBX, take that for what its worth. Here are the current CMBX charts:







Those are indicating further severe stress...

Here is the current 6 month IYR chart, note that it still has a way to go to break its November low:



Nate