factors driving ABX index currently

--Investors have been buzzing for days, trying to explain the latest losses in the ABX index, which signaled a deepening panic in the mortgage market. Several factors have been at play, including the ratings downgrades. --It also could have been related to holders of mortgage- backed securities hedging their positions by making bets against the index. Or it could have been because speculators are betting the subprime woes will worsen. --"The decline in the ABX indexes has been significant, and certainly some people are panicking and shorting it further because many assets they own are going down in value," says Alan Fournier of hedge fund Pennant Capital, which has been betting against the subprime market.