asset backed papers increases as rate drops..., page-11

Yes, 618, but the credit curve (CDS curve) continues to steepen (check out the differential between AA and BBB over the past month and you will see what I mean). With the downgrade this pushes up the refinancing cost. I know the Libor/AA spead has contracted, but in Centro's case this is hardly cause for celebration.

Good point, thanks for that. Forgot their status downgrade yesterday too. it's kind of like a catch 22. if they can sort out their mess, then they will probably be upgraded, and thus lowering their funding cost.

618