A recent Standard & Poor's research report highlights that self-insured credit classes, which are credit enhanced through a senior/subordinate cash flow structure, actually perform on average with bond-insured securitizations.

Analysts said this is the first study of its kind to actually statically measure how different types of credit enhancement perform against each other. "There has been a trend that self-insurance is getting more popular and gradually we are seeing the switch to senior subordination we are definitely seeing more interest on that end," said one source.

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