New issuance continued to be diversified across sectors and well received last week, sources said. Selectively the market was seeing some selling by accounts of off-the-run names/sectors with bids meeting mixed results.

Additionally, the Street is seeing good retail demand for fixed-rate credit cards inside of five years, sources said, as well as non-California rate reduction paper across the curve, according to Banc of America Securities. With minimal new issue supply in the sector and light secondary trading positions, spreads are firm to tighter for the product, noted one analyst.

BofA printed a $250 million subprime auto-loan issue last week with an MBIA wrap for Drive, on Thursday. Also last week, First Union Securities hired five consumer auto-loan securitization professionals for its ABS group (see Whispers).

First Union was in the market last Thursday with a $202 million home equity issue with an AMBAC wrap. The Class B has a $2 million notional amount. Popular Bank of Puerto Rico is the parent of the issuer, Equity One ABS Inc.

Also last week, lead manager Deutsche Bank, along with co's FOB, Lehman and Merrill priced the $767 million Conseco Finance real estate securitization, and most classes up front of Class I saw a bit of concession versus initial talk levels. Class I is comprised of HEL collateral while Group II bonds are backed by Hi-LTV and HIL loans.

Market sources also said that Deutsche Bank is canvassing buysiders for a roadshow next week on behalf of ANC Rental Corp., the owner of Alamo and National. The asset-backed FRN is expected to have a four-year A/L and a 100% MBIA wrap

Caterpillar Financial has a $600 million ABS in the works via Goldman Sachs backed by installment sales contracts, sources noted.

Sources indicated that First Union was pleased on the distribution of Isuzu's $440 million fixed-rate auto-loan deal, the first U.S. ABS for the issuer. Buysiders represented the usual mix of banks, insurance companies, and money managers. The deal settles on May 3, 2001, and MBIA provided the wrap.

AIG was in the market via Goldman Sachs with a $596.4 million ABS backed by commercial loans to corporates financing their insurance premiums. The deal has two tranches (senior/sub) rated AAA and A. This is the third time AIG has used the structure since 1998. Price guidance is expected to be released on Wednesday and a print the week of April 30th.

Also last week, Navistar came at mixed levels versus guidance, with the 1-year A2 tranche coming at guidance of +17 bps over EDSF, and the A3 2-year tranche a basis point cheaper at +29 over swaps.

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