PARADISE ISLAND, Bahamas - While the franchise-loan sector of the ABS market is not yet dead, it is in critical condition, researchers noted at the Information Management Network ABS East conference last week. While franchise loan origination has certainly not ceased, and franchise loan pools trade in the whole loan market, the "execution is not efficient for ABS," noted Morgan Stanley's Chip Schorin, speaking Wednesday on the ABS researcher roundtable.

JPMorgan Securities' research head Chris Flanagan agreed, adding, "This is not a sector we care about going forward, except for cleaning up the current mess."

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