Amid anxieties over what lies ahead, conference delegates got some strongly worded advice last week on how to promote the ABS industrys recovery: bite the bullet, take losses and structure future deals with larger equity components. If the subdued cocktail parties and many underlying bar-side conversations did not underscore the markets shaken confidence, then the remarks delivered during the opening session of IMNs ABS East conference might have.

The outlook for the structured investment vehicle (SIV) markets health drew some of the most unsparing remarks during the session. SIVs had seen stunning growth over the last several years, and they suffered accordingly when gun-shy investors withdrew liquidity support for the instruments.

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