With Q1 2003 over, a few trends in ABS have emerged. First, supply continues to set records, with issuance up about 17% over Q1 2002. Supply for 2003 will almost certainly end up well ahead of 2002’s record amount. Second, virtually all ABS sectors have seen good spread tightening over the first quarter. The lack o fixed-rate supply and the “safe have” view of most ABSs have created good demand in the current volatile market. Finally, spread tiering remains very much in place, with demand focused on higher-quality issuers and sectors.

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