The U.S. ABS primary market had a respectable, if somewhat limited, week of new issue supply, pricing roughly $11 billion in primarily mortgage ABS. Aside from home equity, auto loan and student loan ABS were the only other options investors were given.

Demand remained fairly strong, but showed signs of softening in the near term, particularly down in credit, as home equity subordinates once again moved out to the 300 basis point threshold over one-month Libor. Meanwhile, spreads for triple-A paper remained tight depending on the name, as 30 basis points over Libor for 2.5-year fixed-rate notes was achieved at both the two- and three-year part of the curve.

No surprise, GMAC-Residential Funding Corp. was active as the quarter end approaches. The mortgage-lending unit of GMAC priced two deals last week for a total of $1.5 billion. Early in the week, GMAC-RFC's RAMP shelf sold $484 million of high LTV mortgage product via Bear Stearns, following up mid-week with a $675 million RASC KS subprime deal via Citigroup Global Markets and Credit Suisse First Boston. The RASC 2004-KS3 deal priced both its two- and three-year fixed-rate senior classes to yield 30 basis points over swaps, while its 2.25-year A2A floaters priced at 23 basis points over Libor. Countrywide Home Loans Inc. priced a large, $2.5 billion, home equity ABS through Countrywide Securities. Also, AmeriQuest Mortgage completed a $1.3 billion series 2004-R2 deal via Banc of America Securities and RBS Greenwich Capital Markets. Meritage Mortgage, a lending unit of Alpharetta, Ga.-based and Internet-based bank NetBank, completed its $646 million series 2004-2 deal via RBS Greenwich.

Countrywide priced its 3.5-year 3A4 floating-rate class at 25 basis points over one-month Libor. Countrywide's triple-B minus bonds, meanwhile, with a four-year average life, priced at 300 basis points over Libor.

The principal finance acquisition shelf of Goldman Sachs, GSAMP, priced its second offering this year backed by loans originated by Fremont Mortgage. The $753 million series 2004-FM2 deal was the only dealer shelf home equity ABS in the market last week.

Goldman placed the A2B floating-rate notes, with a 5.7-year average life, at 36 basis points over Libor, while its triple-B minus bonds priced at 295 basis points over Libor, out versus guidance in the 275 basis point area over.

Australian lender Resimac Group completed its first U.S. dollar- denominated offering, which met strong demand that led to an increase in size to $1.1 billion from the original $900 million. Barclays Capital and SG Cowan jointly led the offering. As part of the offering, Resimac Premier Euro Trust 2004-1E contained 632.5 million ($512.2 million) of euro-denominated paper.

Late in the week, the market still had transactions slated to price from First Franklin Mortgage, Delta Funding's Renaissance Home Equity Loan Trust and a self-led offering from Terwin Mortgage.

Outside of the mortgage arena, Ford Motor Credit subsidiary Triad Financial completed its first sub-prime auto ABS of the year, after pricing two deals in 2003. Triad Auto Receivables Trust 2004-A, backed by a full Ambac wrap, priced via Banc of America Securities and Deutsche Bank Securities.

Sallie Mae wrapped up its third ABS of the year, a $3.05 billion consolidation loan ABS via the three-way joint leads of Banc of America, CSFB and Citigroup.

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