SCIWire

US ABS keeps tight




US ABS secondary spreads are keeping tight as the new quarter begins.

The run-in for the last quarter and start to the next were relatively quiet across most US ABS sectors. However, the market continued to hold on to its gains from a very strong Q1.

Multiple sectors and parts of the stack are at or very close to post-crisis tights, with prime autos and student loan ABS still leading the way. At the same time, consumer paper stood out as one of the busiest asset classes last week and saw some strong prints in and out of competition.

Primary ABS issuance has slowed over the past week but a heavy pipeline means the pause is likely to be short-lived. Nevertheless, the lack of a dent made in secondary demand by the high Q1 new issuance volumes is likely to continue given the alignment of fundamentals and technicals currently supporting the market.

Yesterday's US ABS BWIC calendar got off to a slow start before a flurry of lists emerged. Today looks to be following a similar pattern with only four mainly relatively small auctions scheduled so far.

The exception among those is a $35m block of AESOP 2016-2A A due at 11:00 New York time. The bond has not appeared on PriceABS before.

04/04/2017 14:21:36



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