Primary and secondary ABS spreads widened across the board last week, particularly for the prime and retail auto lease sectors. The volatility comes on the heels of a “paradigm shift” in the markets in response to trade war worries and a discouraging policy response from the Federal Reserve.
“Sentiment from numerous Bank of America Merrill Lynch strategists/economists turned notably negative [last] week,” according to a research report published by the bank on Monday. Though securitized products may be able to benefit from the lower rates, they “will not be immune from [a] broad risk-off move,” BAML
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