PHOENIX, Ariz. - Despite the recent challenges facing the securitization of net-interest margins, the technology is adaptable and is anticipated to survive the current legislative challenges and the perceived stagnant interest rates that some had theorized would snuff this sector out. NIMs are still hailed as one the most innovative areas of the asset-backed market.

Speaking at the Residual Interest Finance & Securitization session at last week's ABS West conference, panelists noted the innovations that were added throughout last year as proof that the sector can adapt to change. What's more, the technology - which essentially leverages excess interest - has been quietly, and sporadically, introduced to the auto sector and will soon be attempted in the credit card sector.

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