ABS transactions wrapped by bond insurer MBIA saw only mild spread widening in the secondary market last week, according to sources. The Armonk, N.Y.-based bond insurer received a second round of subpoenas last week from the Securities and Exchange Commission and the New York Attorney General's Office regarding a number of topics, including reinsurance contracts and credit default swaps on the company's corporate debt.

Sources from one ABS trading desk said there had been little trading in any MBIA-wrapped deals, and where there was, the spread change was negligible. The suggested bid would be three to five basis points wider than usual for MBIA-wrapped home equity ABS, said one trader.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.