The improving economy has cast a ray of sunshine among Fitch Ratings analysts, who were generally optimistic throughout the firm's quarterly outlook conference call last week. Stronger growth prospects, Fitch said, will contribute to a spike in senior/sub structures for non-prime lenders throughout the year, as the debt tracker has been approached by issuers and bankers interested in bringing unwrapped ABS.

Noting the trend of upgrades outpacing downgrades, Fitch said that the sparse downgrade activity in the first quarter suggests a recovery that bodes well for consumer ABS. Risks will persist, however, in certain ABS sectors.

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