January ended with 24.4 billion ($31.7 billion) deals priced in the European market. This rapid pace is set to continue in February with 15.7 billion already part of this month's deal line-up. The shorter month apparently won't truncate European ABS activity.

Early February pricing levels remain on the tight end. But the debut Spanish RMBS deal from Bancaja settled in at better spreads compared with those achieved at the end of 2006's pricing frenzy. This period saw the glut of Spanish RMBS deals bring in price levels, particularly at the senior tranches. Market players said that since the start of the year, triple-A spreads in the sector have tightened by one basis point on a generic basis while selective deals have performed even better.

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