The U.S. ABS primary market generated $15 billion in issuance last week, carrying the market into its final month of what has been another record-breaking year. Issuance volume for 2005 has already surpassed last year by over 20% and, if prophecies about a pre-Reg AB issuance glut are correct, it could pass the $1 trillion barrier.

The advent of the Securities and Exchange Commission's much awaited Regulation AB, which becomes fully effective Jan. 1, is expected to unleash a flood of fresh supply, as issuers and banks grapple with the rule and become fully compliant, preferring to get deals done before Reg AB takes effect. The result is expected to be a drought in the first few weeks of 2006, which could extend farther into the quarter.

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