LAS VEGAS - While the specter of defaults and delinquencies across the lower ends of the home equity ABS credit spectrum disturb more than a few analysts and investors, some are beginning to shift their focus to the credit outlook of the prime and alt-A sectors.

They reason that rating agencies have required enough credit enhancement on subprime bonds to cushion them through a rough credit environment. However, investors in higher FICO loans, particularly those with limited documentation, could be in for an unpleasant surprise.

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