A timid European primary ABS pipeline highlights good buys from a secondary perspective, said market sources. The best bet right now lies on the side of consumer-related products with competitive bids for Dutch RMBS and Italian state ABS.

Frasier Malcom on the trading desk at Dresdner Kleinwort Wasserstein said in a commentary on the secondary market: "I think there is still a lot of value in some late 2001 consumer deals, most notably the Italian consumer-loan/lease sector. Relatively short dated deals such as Locat and Lombarda with good reoffer spreads look especially attractive. Deals with top quality collateral such as the Garda 2001-2 issue should also look attractive against the European RMBS sector."

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