Performance of ABS deals remained strong through April, but macroeconomic concerns might eventually weaken performance later in 2007.

Specifically, housing market weakness continues. At the same time, retail sales have slowed, and American consumers are confronting higher gasoline prices as they head into the traditionally busy summertime driving season. Taken together, these might precipitate a slowdown in the labor market and trigger an increase in late-stage delinquencies for some U.S. term ABS sectors later in the year, according to Fitch Ratings.

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