Last week U.S Secretary of the Treasury Henry Paulson extended the biggest lifeline to the financial markets of all time - and perhaps made the biggest gamble with U.S. taxpayer money - when he announced a plan to purchase approximately $700 billion in troubled assets from U.S. financial institutions.

While the ABS market reacted positively to the news, the plan's impact will be determined by the pricing of illiquid assets, something the credit markets have been grappling with for more than a year now.

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