The hullabaloo created by the recent aggressive U.S. RMBS downgrades has led to some much-needed price repositioning in European trades. Market players say that the credit news is likely to continue to chip away at the tight pricing, which has held steadfast over the past few months, since the eruption of the U.S. subprime market woes.

"Credit news is doing exactly what it wasn't doing five months ago - sticking and holding versus the Teflon conditions the market had grown accustomed to," analysts at the Royal Bank of Scotland said. "Guidance has been adjusted accordingly."

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