There was a significant rise in European investor interest in monoline wrapped asset-backed securities this year, said specialists in the industry.

"European investors find it attractive to purchase wrapped deals because they can more efficiently understand and be comfortable with taking the risk as a guarantor, as compared to a long list of factors one needs to look at in deals that are not guaranteed," said Charlie Williams managing director of fixed income investor relations at MBIA. The straight-forward nature of wrapped deals becomes more attractive because many European firms don't have the staff and the resident expertise to understand the spectrum of risk involved in an unwrapped asset-backed deal.

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