With ABS prices on top tier names and sectors generally reflecting fair value, value opportunities are somewhat limited. However, as fixed income investors “pour into credit” reaching for yield, subordinate ABS offers significantly improved relative value versus unsecured Corporates. Hence, the firm has increased r allocation on subordinate ABS to overweight .On the consumer credit side, the March employment report was softer than expected with a total loss of 465,000 jobs over the past two months. Remains wary of subprime names given our view that consumer credit trends may be more susceptible to downside risks than the market anticipates.

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