While double-B rated tranches have become a more regular feature of the mortgage ABS landscape in recent months, it is the brave few who look to venture that far down the capital structure. However, some investors may even be ready to take the plunge into single-B territory - provided the price is right - and issuers are looking to oblige.

"There will more double-B activity, and maybe even a few opportunistic single-B pluses," said Chris Schiavone, vice president at JPMorgan Securities. The rating agencies are more conservative than the market, he added, creating more opportunities to distribute lower-rated classes.

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