Scars from virus to haunt ABS traders long term

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By Jennifer Kang
02 Dec 2020

Covid-19 has transformed the secondary market in securitization in various ways — from forcing the market to take trading online to shifting the peak trading hours. Panellists at ABS East this week said the changes enacted during the spring sell-offs are here to stay, and traders have already begun to adapt to the new normal.

The secondary market stopped cold in March, when the news of the pandemic began hitting the financial markets. Until the Federal Reserve was able to come in with various assistance programmes, particularly the Term Asset Backed Securities Loan Facility (TALF), the market experienced a severe liquidity crisis.

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