Subprime Mortgages Lead Credit Rally as Concerns About Greek Default Ebb

From bloomberg.com

Investor confidence in debt from subprime mortgage securities to investment-grade bonds is rebounding after tumbling last month on concern that a Greek default would infect credit markets. A Markit ABX index tied to subprime-mortgage bonds climbed the most this week since September 2009. The cost to protect corporate debt in the U.S. from default is poised for the biggest drop since last July and relative yields on junk bonds are on pace to fall by the most in more than a year. A selloff in credit markets, fueled by Europe’s sovereign debt crisis and concern that the economic recovery is slowing, ... (full story)