With the slowdown in new issue ABS supply ahead of quarter-end, secondary trading - particularly for higher-yielding alternatives - picked up significantly last week. At least one bid list per day circulated from both smart-money profit takers and forced sellers, sources reported. Most of the bonds to hit the street, noted sources, were backed by manufactured housing.
Clearing levels for the various bonds were described as "sloppy," although many of the high-coupon bonds traded at a premium. The bonds most prevalent throughout last week were A3 and A4 senior classes of notes issued by Conseco Finance Corp., which made up one bid list last Wednesday that totaled "a couple hundred million," investors said.