Last week marked another slow session in the U.S. ABS primary market, as August rolled on and the Republican National Convention neared. As of Thursday evening, roughly $4.8 billion in new-issue ABS had priced, while close to $2 billion in mortgage ABS was still making the rounds.
With the FOMC raising short-term interest rates 25 basis points to 1.5% early in the week, and a new set of disappointing employment numbers coming late the week before that, the market had a lot to digest. However, secondary liquidity improved dramatically on Wednesday, the day after the Fed's announcement, according to research from Credit Suisse First Boston. The overall tone of the secondary market remains positive, CSFB analysts said.