Recommends increasing exposure to higher yielding ABS sectors, including dealer conduit HEL ABS, manufactured housing ABS, distressed or semi-distressed credit card and auto ABS, and aircraft lease ABS. By extension to all of the above, also suggests Structured Finance (or SF) CDOs backed by many of these asset classes. Believes opportunity is emerging and probably will continue to emerge over the next 3 to 6 months (particularly as the dreaded year-end technicals kick in). It’s time to switch the mindset from defensive to aggressive in order to take advantage of opportunity when presented.
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