The U.S. ABS primary market hit the first week of August like a wall, generating only $7 billion in new issue supply. The market had been cruising along at a pace in the $13 to $14 billion range for most of July, but the summer doldrums just kicked in.

In major financial news, there was more acquisition activity in the credit card market as HSBC Finance Corp. agreed to purchase monoline credit card company The Metris Companies, continuing a trend that is expected to shrink the credit card ABS sector.

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