PHOENIX - David Heike, head of ABS research at Lehman Brothers, started off last week's non-mortgage ABS research roundtable by likening the ABS sector to a Starbucks Frappuccino - frothy, steamy and rich.

It was impossible to escape "tight spreads" and "strong technicals" in Phoenix last week. "We have never before seen the technicals we saw in late 2004. There was a tremendous amount of money being put to work at the end of last year," said Chip Schorin, head of ABS research at Morgan Stanley.

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