As the European securitization market moves apace in the second half of the year, with many new deals about to be launched into the market, it may be time for investors to take stock and look at where the real value for money lies.

In Merrill Lynch's quarterly review of the non-US ABS and MBS markets, the bank asserts that secured bonds still offer value over corporate bonds in terms of their credit resilience. However, following the end of Y2K fears, the spreads on international floating rate notes have tightened between two and seven basis points since the start of the year, and there are signs that fixed rate bonds are also beginning to tighten in.

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