The improving liquidity in the broader financial markets did not stem the widening in spreads on asset-backed securities last week, according to research published by J.P. Morgan.

“It is possible that the better liquidity in ABS relative to other structured product sectors allows investors to more easily liquidate ABS assets to satisfy redemption requests, which puts further pressure on spreads,” Ed Reardon and Kaustub Samant wrote in the report.

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