BOCA RATON, FLA. - Home price appreciation and the prevalence of IO loans and ARMs in subprime home equity ABS pools dominated the discussion throughout the Investing in Subordinates investor panel at Information Management Network's ABS East conference last week.

"The next 12 to 18 months will be a critical period for home prices," said Michelle Russell-Dowe, a director and portfolio manager at Hyperion Capital Markets. "Appreciation could continue, but a correction is likely coming on."

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