Trade Matrix: Countrywide -- ABS

Recently priced new issues in both the Auto and subordinated Credit Card sectors continue this year's trend to tighter ABS spreads for AAA securities and perceived high-quality collateral. The firm notes that at current levels, the outlook for any significant near-term spread tightening in these products is quite low. The firm believes that the relatively steep credit curve in the HEL market may make down in credit trades appealing, especially into AA- and A-rated tranches.