With the return of the CDO bid, one of the biggest winners of late has been home-equity ABS triple-B minus rated subordinates. Routinely pricing with an 800 basis point margin versus Libor, this year, top-tier triple-B minus bonds have cracked the 500 basis point threshold and are now approaching 400 basis point area over Libor.

A pair of recent transactions that priced this month - Countrywide Home Loan Inc.'s 2003-BC6 and First Franklin's 2003-FF5 - have seen discount margins of 525 and 550 basis points, respectively. Just more than one month ago, triple-B minus bonds routinely priced in the 750 to 800 basis point area over Libor.

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