Covid benefit expiration to dent ABS market recovery

Key government stimulus benefits are set to expire at the end of the month, and as Congress works out what the next coronavirus aid package will look like, the ABS market will see spreads fluctuate and delinquencies spike, with consumer assets to be hardest hit.
The ABS market has made a strong recovery since the first Covid-19 shock in March. Two weeks ago, the market saw the highest weekly volume since before the outbreak, and spreads have continued to tighten this week. In the secondary market, triple-A spreads have come in 4bp-10bp and
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