With last year showing a decrease in volume issuance, mirroring levels seen in 1997, market participants can only ponder what 2000 will bring for home-equity asset-backed securities.

Issuers dealing with the liquidity crisis of 1998 resulted in a volume decrease of 21% in 1999. The negative effects of the crisis caused issuers that once had a strong role in the home-equity market to reduce issuance for 1999 or to not issue at all. Those with the greatest financial strength picked up the slack, filling much of the void, market sources say.

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