First quarter issuance topped the 61 billion (US$75 billion) level, though the mountain of new issues has had little impact on the tightening bias that took hold this quarter. Things cooled down last week as the market visited Geneva en masse, though the question still lingers: How tight can it get?

"The proven performance of securitization over a couple of cycles, and the realization that this is a value market, has sparked interest particularly from outside investors who don't see the same spread volatility here as they would in the corporate market," said one industry source at this year's ABS Summit. While spreads have dipped much lower than investors anticipated at the start of the year, new demand and further volatility among corporate names could tighten the market further, by at least one to two basis points.

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