Utility tariff bonds continue to price wide of other off the run ABS asset classes despite offering investors strong credit and strong fundamentals, according to Wells Fargo Securities.

The widening trend that has driven pricing  for the sector, wide of credit card ABS since Q3 2012 means these bonds offer buyers “good relative value” without the need of taking on, “undue risk,” explained John McElravey, head of consumer ABS research at Wells Fargo in a Feb.25, report.

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