The U.S. ABS primary market played host to $13 billion in new issues last week, as the market came alive again after a series of holiday-interrupted weeks and a mild, early-autumn slowdown. As the market digested news of another quickly forming hurricane and of the possible sale of General Motors Acceptance Corp., a healthy variety of deals hit the board.
The largest deal on the week was a $1.7 billion private credit student loan deal from Sallie Mae led by Credit Suisse First Boston, Lehman Brothers and Merrill Lynch. The three-year tranche of the deal priced at four basis points over three-month Libor, flat to guidance, with the seven- and 11-year tranches also pricing flat to guidance at 18 and 27 basis points over Libor respectively.
The student loan sector also had an offering from Access Group, Inc. that had yet to price as of press time. The five-year tranche of the deal was being talked in the four basis point area over three-month Libor, while the seven-year tranche was being talked in the 12 basis point area over three-month Libor. The 11-year tranche, meanwhile, was being talked in the mid-teen area over Libor.
Nissan Motor Co. brought a $1.39 billion auto lease transaction to market led by Citigroup Global Markets and Merrill. The deal priced in-line all the way down the capital structure, flat to four-month Libor for the money-market tranche, four basis points over EDSF for the one-year tranche, with the two-year pricing at seven basis points over EDSF and the 2.66-year pricing at five basis points over one-month Libor.
American Honda Finance Co. was also in the market in a big way with a $1.5 billion prime auto loan transaction led by Banc of America Securities and Barclays Capital. The deal priced flat to guidance, with the money-market tranche yielding one basis point under four-month Libor, the one-year tranche one basis point over EDSF and the two-year tranche pricing at two basis points under EDSF.
The credit card sector saw offerings from Advanta Corp. and Citibank, N.A. Advanta tapped the market with $250 million deal led by CSFB and Merrill. The single-tranche deal priced its three-year A3 class at four basis points over swaps, flat to guidance.
Citibank priced a $750 million, triple-A rated deal with a five-year fixed-rate tranche pricing flat to swaps, in-line with guidance. Citibank also priced a $200 million, triple-B rated three-year deal which priced at 24 basis points over swaps.
Morgan Stanley brought a $1.4 billion home equity dealer shelf deal to market last week, with the one-year tranche of the deal pricing at 10 basis points over one-month Libor, the three-year at 25 basis points over one-month Libor and the 6.4-year at 34 basis points over one-month Libor, all flat to guidance.
GMAC-RFC tapped the market to the tune of $1.3 billion of subprime MBS through its RASC trust led by JPMorgan Securities. The three-year tranche of the deal priced at 25 basis points over one-month Libor, one basis point tight to guidance, the six-year tranche of the deal priced 34 basis points over one-month Libor, on the tight edge of guidance.
The company also brought a $221 million securitization to market, backed by high-LTV MBS, with Bear Stearns as joint lead along with RFC Securities. The one-year tranche priced at 14 basis points over one-month Libor, flat to guidance, the two-year tranche priced at 33 basis points over swaps, one basis point wide of guidance. The three-year tranche of the deal priced at 40 basis points over swaps, flat to guidance.
The home-equity market also hosted a hefty $1.12 billion transaction from Barclays Capital, backed by collateral originated by Fremont Mortgage that had yet to price as of press time. No guidance was available for the senior tranches of the deal, but the double-A plus rated five-year tranche was being talked in the 44 basis point area over one-month Libor, while the single-A plus rated tranche was being talked in the 64 basis point area over one-month Libor.
People's Choice Home Loan Inc. tapped the market with a $1.1 billion deal led by Bear Stearns. The one-year tranche of the deal priced at 12 basis points over one-month Libor, one basis point wide to guidance, while the three-year tranche of the deal priced at 26 basis points over one-month Libor, on the tight end of guidance in the 26 to 27 basis point range.
Deutsche Bank Securities had a $627 million ACE home equity offering in the market, with a two-year tranche pricing at 26 basis points over one-month Libor, flat to guidance, and another two-year tranche pricing at 27 basis points over one-month Libor, also flat to guidance, and another priced at 29 basis points over one-month Libor, flat to guidance.
AmeriQuest Mortgage also brought a $606 million AMSI deal to market but had yet to price as of press time. The one-year tranche of the deal was being talked in the 9 to 10 basis points over one-month Libor range and the three-year tranche of the deal was being talked in the 24 to 25 basis points over one-month Libor range.
Bear Stearns also had a $276 million deal in the market, un-rated by Moody's Investors Service and with a 2.66-year tranche that priced at 50 basis points over one-month Libor. UBS Securities had a $114 million scratch and dent deal in the market, with a money-market tranche being talked in the 35 basis point area over one-month Libor. Wirefree Partners was also shopping a $139 million, split rated triple-B plus and single-A minus, 4.5-year deal being talked in the 90 basis points over swaps area and backed by wireless license fees. Aegis Mortgage was also shopping a $49 million home equity deal.
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