The U.S. ABS primary market started the New Year with a sluggish pace, pricing only $7 billion of new issues.

The light week was most likely due to the newly implemented Securities and Exchange Commission Regulation AB, which became fully effective Jan. 1. Sources believe issuers are holding back from placing deals as they work to comply with the new rule. The issuance drought follows a number of weeks late last year when volumes routinely reached into the high $20 billions range. Deal flow is not expected to resume its normal pace until later in the quarter.

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