The gush of issuance from the subprime MBS sector has slowed significantly since the overall ABS market kicked off in January and it is beginning to drag down overall issuance numbers, too. No doubt, this is sobering news for the ABS industry.

As ASR pointed out recently, however, it doesn't necessarily mean that investors will behave recklessly in an effort to pile up on whatever paper becomes available. Another silver lining: Other asset classes, credit cards in particular, get a chance to shine. The HEL sector, which encompasses subprime MBS, is running behind 2006's issuance by about 32%. Overall ABS issuance is down 20.8%, according to research from Credit Suisse, Thomson Financial, MCM Corporate Watch.

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