PT  - JOURNAL ARTICLE
AU  - Kishore Yalamanchili
TI  - Risks and Opportunities in the ABS Sector
AID  - 10.3905/jsf.2012.17.4.143
DP  - 2012 Jan 31
TA  - The Journal of Structured Finance
PG  - 143--147
VI  - 17
IP  - 4
4099  - https://pm-research.com/content/17/4/143.short
4100  - https://pm-research.com/content/17/4/143.full
AB  - The ABS sector has recovered well from the depths of credit crisis and is functioning relatively well. The risks facing investors are manageable; however, investors should exercise caution while dealing with off-the-run ABS and lower-rated tranches. Although it remains strong, collateral performance will weaken at some point. In addition, some of the positive credit trends, such as the high recoveries on used cars, may not last forever. Investors should be on guard against subordination levels declining in the face of increasing demand for the deals.TOPICS: Credit risk management, asset-backed securities (ABS)