The auto ABS sector is in reverse gear, and threatens to suppress total traditional asset securitization numbers for 2006, according to Wall Street estimates. Issuance will reach $675 million for all of 2006, about 6% shy of 2005's volume, according to recent estimates from Citigroup Capital Markets.

Citigroup's estimates look decidedly more discouraging despite revisions to the numbers that include production from the residential MBS, CDO and student loan auction rate sectors. The bank added another $5 billion from the student loan sector and $15 billion more from home equity loan issuance, but production estimates from the auto sector, which were off by $15 billion, offset those gains.

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