Maybe, just maybe.
Now, all we have to worry about is the commercial mortgage market.
* * * * * J B K * * * * *
San Francisco
March 30 (Bloomberg) -- Subprime-mortgage securities are rising at an accelerating pace as the U.S. begins to encourage reductions to homeowners' balances, which may lead to fewer foreclosures and a quicker end to the housing slump.
A Markit ABX index of credit-default swaps tied to 20 subprime-loan bonds rated AAA when created in the first half of 2006 climbed 3.2 percent last week to 49.1, the highest since January 2009, according to Markit Group Ltd.
Senior-ranked bonds tied to borrowers with poor credit will mostly benefit after the Treasury Department said for the first time it would seek to cut the size of mortgages, reducing the likelihood that loan modifications will fail, according to JPMorgan Chase & Co., Morgan Stanley and Barclays Plc. The revised plan also supports the housing market by helping avert more foreclosures, Amherst Securities Group LP analyst Laurie Goodman said.
http://www.bloomberg.com/apps/news?pid=20601087&sid=avSJnnOE4pQQ&pos=5
