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BIS: ABX Overstating Potential Subprime RMBS Losses 

In its second paper this year to take aim that the so-called ABX indices, which are based on credit derivatives written on MBS backed by subprime mortgage loans, the Bank for International Settlements suggested again late last week that financial firms marketing subprime RMBS assets based on pricing inputs from various ABX contracts may be overstating potential losses in the securities.