The ABS/CMBS secondary markets moved hot and heavy last week, according to traders, while mortgages suffered. Amid semi-decent economic news, one trader called the action a "reverse flight to quality" trend, as structured finance triple-As, similarly to Treasurys, may experience a slight sell-off.

Unlike Treasurys, however, there has been little-to-no cheapening in the ABS secondary to date, though roughly $2 billion traded hands on Wednesday bringing the weekly total near $4 billion, a source said adding, that spreads will likely widen if the sell off continues. Interestingly, however, it appears these secondary sellers are the non-traditional buyers of ABS that crossed over last year to park their cash in safety.

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