The U.K. consumer ABS transaction, Paragon Personal and Auto Finance (PPAF 3), recently passed its step-up date on April 17 without being called, resulting in a doubling of the coupons due on the notes.

According to  Barclays Capital analysts, there are four transactions with coupon step-up dates this year from Paragon 7 to 10.

"With Paragon undertaking a non-deal road-show earlier this year, some investors were hopeful that Paragon may call their transactions, but given the financial difficulties faced by Paragon, and furthermore the non call of their ABS transaction, we believe the probability of call remains particularly low," analysts said.

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