While the financial markets were in trepidation last week ahead of Alan Greenspan's comments, the Fed chairman seemed to reaffirm a measured tightening bias - which most agree translates to a 25-basis point hike on Aug. 10 - despite some disappointing economic indicators over the past several weeks. Some were betting that the August hike would be postponed.

At a Deutsche Bank Securities economic outlook held last week, Anthony Thompson, head of ABS and CDO research, noted the bulk of first-half ABS supply came from the 20 leading issuers, and nine of the top 10 are mortgage lenders (Sallie Mae at No. 5 is the exception). As a result, Thompson said, the impact of higher rates on real estate assets is the "leading risk currently facing the ABS market."

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