The ABS market continued to see sunny skies last week, as the Senate Banking Committee was close to approving a bill that would set up a $300 million Federal Housing Administration loan guarantee program, and appoint a regulator that would oversee both Fannie Mae and Freddie Mac, initiatives that, according to one trader, will made ABS "a safer place to put money."

This, along with the various student loan initiatives making their way through Congress, have brought back a lot of the major players that had exited the market last summer, the trader said. The consensus in the market was that issuance has hit rock bottom and performance would improve from here. Other pundits agreed.

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