PHOENIX, Ariz. - With the growing popularity of net-interest margin securitizations and an increasing demand from CDO managers for subordinated HEL paper, monoline-wrapped offerings are expected to decrease in the near term, said Tom Warrack, director of structured finance ratings at Standard & Poor's, at a preview of his panel session at the IMN/Fabozzi ABS West conference last week.

Because of the partial triggers built into monoline-wrapped deals, sureties do not allow for the securitization of net interest. Still, demand for NIM securitizations heated up significantly towards the tail-end of last year. In fact, the benefits of NIM securitizations to issuers have become so evident that even subprime auto lenders are starting to offer them.

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