The asset-backed market posted its best year of relative value in 2003, according to returns tracked by researchers at Lehman Brothers. However, it was trounced by the unsecured credit market, which also enjoyed its best year to date. Driven by massive tightening in numerous sectors, the Lehman ABS Index yielded 179 basis points of excess return versus Treasurys, Lehman reports, compared with the 310 basis points of returns seen in unsecured debt last year.

Beset by record-setting mortgage refinance activity, the MBS market was outshone by ABS by a 168 basis point margin.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.