Merrill has increased its Modest Overweight in HEL B-Pieces to a full overweight, reflecting continued cheapening of triple-B's that Merrill thinks is overdone. The firm has moved its allocation to the non-prime auto loan sector from neutral to a modest underweight. The spread differences between non-prime and prime auto loan ABS have come in dramatically. Analysts are maintaining their overweight weighting in the auto lease ABS sector. They believe PBGC lien risk is minimal for most issuers.

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