JPM rät zur Flucht aus dem Asset Backed Securities Markt...

verfasst von kingsolomon, 03.08.2002, 18:39

aktuelles Fundstück von Doug Noland

From yesterday evenings JPMorgan Global ABS/CDO weekly:

"The post-Enron/WorldCom/etc. irrationality/panic cancer has hit the ABS market and quickly eroded its safe haven status. Credit cards have been hit particularly hard in the last two weeks on two fronts: headline risk with non-benchmark names such as Cap One and Metris and early amortization risk on high fixed-rate coupon premiums. Other sectors are now widening in sympathy. It is hard to be a hero in today's market environment, so in spite of what
were just recently sound fundamentals, we find it difficult to argue against the spread-widening trend. We anticipate that the incipient weakness in ABS will quickly be passed on to the consumer in the form of reduced liquidity, which will provide powerful support for the"double-dip" recession scenario and, consequently, further widening. Weaker names and sub-prime credits may well be punished
severely over the near term. We are reducing our recommended allocation as follows: underweight fixed-rate cards, non-benchmark issuers in cards and autos, equipment leases and manufactured housing; neutral on top-tier floating-rate cards; neutral on prime autos, home equities, stranded assets and Global RMBS; overweight student loans."

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• JPM rät zur Flucht aus dem Asset Backed Securities Markt... - kingsolomon, 03.08.2002, 18:39