NEW YORK - Deutsche Bank Securities' ABS research team is predicting 4% overall growth in the sector over last year, with slowed issuance in mortgage related ABS, as interest rates creep up and home price appreciation slows.

"The ABS market continues to defy gravity," said research analyst Anthony Thompson, speaking at a media reception last week, citing last year's whopping $850 billion total and historically tight spreads. Thompson pointed out that last year was the first time that asset-backed issuance exceeded investment-grade corporate debt and high-yield debt issuance combined, buoyed by the incredible surge in home equity issuance.

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