Ordinarily, a week of $20 billion in new ABS issuance would be considered a marvelous accomplishment, and one that would be expected for the market, especially after coming off of a major industry conference. Although the consumer ABS sectors hummed along with scarcely a worry, that buoyancy was juxtaposed against wild, painful gyrations in the HEL sector.

On Thursday morning, the ABS industry was greeted with widely publicized news about customer defaults in HSBC's subprime mortgage portfolio and New Century announced that its new loan volume was declining. The ABS industry reacted immediately to Thursday morning's news, punishing the new ABX index with nearly uninterrupted selloffs throughout the day.

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