As the bulk of loans underlying the ABX.06-1 index approach their reset, market participants now say the performance of these mortgages could start 2008 off on a better footing than previously expected. They cited the better quality of the underlying loans and the timing of the resets as the factors contributing to the better outlook.

Currently, the ABS market is dealing with the uncertainty of how the securities will perform after these loans reset. These dark clouds notwithstanding, a bright spot for the 06-1 vintage is the fact that refinancing alternatives for these borrowers still exist, some market players said.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.