1. Just reported that asset-based commercial paper (ABCP) declined another $11 bln last week. There is a lot of dead fish in the deep waters, just give it some time before you feel that smell…
  2. CMBX spreads are moving up, just a little for now
  3. ABX is in panic, but this doesn’t matter anymore – who cares about ABX? The only point is that when ABX is crushing you can start watching for ripple effects, so it is useful as a warning

Update. It didn’t take long to get the explanation of this panic – it the blowup of the two large SIVs. $23 billion sounds like the real money…