With the safe harbor from the Federal Deposit Insurance Corp. (FDIC) and Term ABS Loan Facility (TALF) in place until March, there are near-term positive expectations for the ABS market going into the New Year, market sources said.

"For the first quarter, there's still new issuance guaranteed under TALF, spreads remain tight and there's good opportunity out there particularly with investors a lot more comfortable with transaction fundamentals," said Douglas Long, executive vice president for business strategy at Principia Partners. He added that new-issue offerings without leverage are also coming in at really good pricing.

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