U.S. subprime asset values may be showing some early signs of stabilizing along with U.S. home prices, according to a report by Fitch Solutions, New York. Fitch said its total market U.S. subprime index as of the beginning of this month was 8.34, which was higher than its all-time low of 7.27 seen in May, but was still significantly lower than its opening value of 42.56 on in November 2007. Fitch managing director and author of the report, Thomas Aubrey, said his company — which is introducing five new asset-backed securities credit default swap indices — has found that the synthetic subprime market is still seeing more activity than its cash equivalent and is still being looked to as a proxy for asset values.
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