Recovery rates on manufactured housing ABS bonds have seemingly reached their nadir; moreover, investors in these bonds should expect recoveries to remain at their current low levels throughout the lives of these transactions, according to analysts at Standard & Poor's.

Recovery rates on some of these transactions have been as low as 5%, said S&P Director Christopher Conroy. "This is generally a permanent impairment as [manufacturers] continue to wholesale units to get through the repossession backlog," Conroy said, speaking at a recent investor conference hosted by the rating agency at its New York headquarters.

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