The U.S. primary ABS market had another bustling week to once again price upwards of $9.3 billion as of Thursday's market close, with the home equity sector accounting for $5.5 billion of new-issue volume. With the heavy new issue calendar dominating the landscape, there were conflicting reports on secondary volume. "Wednesday was a very active day in the secondary market, led by profit takers in all asset classes. For the first time in the past couple of weeks, the selling was met with widespread customer interest, while primary spreads continued to grind in tighter across ABS sectors," said Credit Suisse First Boston analysts in a report.
However, this was not the broad consensus. "All hands on deck are focused on new issue - traders, salesmen, and accounts. There is very little activity in secondary from my vantage point," said one managing director on a home-equity trading desk.