The European Central Bank (ECB) revealed changes to its repo liquidity program last week. The moves are intended to make the repo liquidity option less appealing for ABS issuers.

However, market sources said that while the moves will bring more punitive charges, banks might still find the ECB's lifeline a cheaper option as the current credit crisis intensifies. This is because of the way the program's readily available liquidity compares with what the wholesale capital markets have on offer.

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