Spreads rally to bring Italian deals into play
Peripheral ABS spreads have rallied enough since August for top tier banks to give a public deal serious consideration, traders say. But another large retained Italian deal on Wednesday showed that banks will not be easily weaned off central bank repos.
"There is a lot of demand for peripheral ABS bonds coming from real money accounts," said an ABS trader. "Unfortunately its quite hard to source bonds, especially the front pay part of top tier names."Core European ABS is still well bid. But buy and hold investors have turned ...
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