The improving economy combined with investor demand for yield is allowing some of the more headline-laden issuers, who had needed surety wraps to bring offerings over the past two years, the ability to sell senior/subordinated structures once again. Strong receptions for recent transactions from Providian Financial and AmeriCredit Corp. are evidence of the changed economics that has other issuers, including The Metris Companies, assessing the possibility of issuing unwrapped ABS, sources said.

"General economic recovery, survival of [formerly distressed names], tight spreads for top-tier issuers and strong CDO demand for yieldier assets all contribute to these issuers having funding options in senior/sub form," said JPMorgan Securities ABS research head

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