In bank research last week, Merrill Lynch discussed a noteworthy spike in the current loss rates of Oakwood Homes manufactured housing ABS, likely attributable to an aggressive reduction of repossessed inventory.

In late September, Credit Suisse First Boston noted the same phenomenon, stating that Oakwood "suffered a significant increase in defaults as a result of their conversion of [Loan Assumption Program] loans to repo, resulting in accelerated liquidation of the newly classified repo loans."

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