In the midst of downgrade madness, multiple firms are noting that ABS-backed collateralized debt obligations have yet to get hit, despite pricing wider than the high-yield deals.

Both Deutsche Bank and UBS Warburg put out recommendations for ABS-backed deals last week. Currently, triple-A classes of ABS CDOs price five to seven points outside of high yield deals, according to Warburg. The firm sees a bias toward tightening for those deals, so that the deals will eventually price in line with the high yield deals.

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