Volumes in European secondary flows are light and investor participation is low, say market participants, adding that at the moment the secondary does not offer compelling value when compared to a solid European primary pipeline.

"The problem for the secondary market at this time is that the significant oversubscription levels for recent deals clearly demonstrates that there is a high level of demand for ABS product, even at these tight levels," explained Dresdner Kleinwort Wasserstein analysts. "This provides a solid floor to prices and makes traders unwilling to cheapen offers to the compelling levels that would grab investor attention." Analysts added that for the time being they expected secondary flows to remain light and particularly sensitive to primary sponsorship levels.

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