The U.S. ABS primary market swelled to $19 billion last week after two relatively cool weeks of issuance.
The largest deal to price on the week was a $3.85 billion global MBS deal from the Bank of Scotland's Mound Financing vehicle led by Citigroup Global Markets, Deutsche Bank Securities and Lehman Brothers. Of the total, $1.8 billion was in U.S. dollar denominated tranches. The $750 million, one-year tranche priced at four basis points under one-month Libor, flat to guidance, while the $850 million, 2.8-year tranche priced at six basis points over three-month Libor.
USAA Federal Savings Bank tapped the market with a $1.49 billion prime auto loan deal led by Deutsche Bank and Wachovia Securities. The money-market 2a7 tranche priced at two basis points under four month Libor, flat to guidance, while the one-year tranche priced at one basis point over EDSF, also flat to guidance. The two-year tranche priced to yield three basis points under swaps and the three-year tranche priced at one basis point over swaps, both flat to guidance.
JPMorgan Securities brought a $1.4 billion home-equity transaction to market - backed by WMC Mortgage originated collateral - the one-year tranche of which priced at 12 basis points over one-month Libor, one basis point wide to guidance, while the 4.7-year tranche of the deal priced at 26 basis points over one-month Libor, flat to guidance.
Credit Suisse First Boston priced a $1.4 billion home equity deal from its Asset Backed Securities Corp. dealer shelf, retaining five of the senior tranches. The first tranche to hit the board was the $173 million three-year class that priced at 26 basis points over one-month Libor, flat to guidance.
The student loan sector was represented by a $1 billion offering from NorthStar Education Finance via Banc of America Securities and RBC Dain Rauscher as joint-lead managers. The seven-year tranche of the deal priced at 10 basis points over three month Libor, one basis point tight to guidance, while the 10-year tranche of the deal priced at 13 basis points over three-month Libor, flat to guidance, and the 14-year tranche of the deal priced at 17 basis points over three-month Libor, also flat to guidance.
GMAC-RFC posted a $693 million deal led by Citigroup and RFC Securities. The one-year tranche of the deal priced at 10 basis points over one-month Libor, while the three-year tranche priced at 27 basis points over one-month Libor, both flat to guidance. In fact, the deal priced flat to guidance all the way down the
capital structure.
GMAC-RFC also priced a $437 million, self-led deal, the one-year tranche of which priced at ten basis points under one-month Libor, one basis point tight to guidance, while the three-year tranche priced at 26 basis points over one-month Libor, one basis point tight to guidance, and the six-year tranche priced 35 basis points over one-month Libor, one basis point tight to guidance.
Carrington Mortgage was in the market with an $870 million home equity deal, the two-year tranche of which priced at 23 basis points over one-month Libor, while the three-year tranche priced at 28 basis points over one-month Libor, both in-line with guidance. The 5.5-year tranche priced at 38 basis points over one-month Libor, flat to guidance in the 38 basis points to 40 basis point range over one-month Libor.
The Metris Companies priced a $500 million transaction - its first offering since its acquisition announcement - led by Banc of America, Barclays and Deutsche Bank. The structure consisted of four, two-year tranches rated triple- double- and single-A, as well as a triple-B subordinate class. The triple-A-rated tranche of the deal priced at four basis points over one-month Libor, one basis point tight to guidance, while the double-A-rated tranche priced at 12 basis points over one-month Libor, also tight to guidance set in the 13 basis point area over one-month Libor.
SoundView Mortgage tapped the market with a $476 million home equity offering led by RBS Greenwich Capital. The series 2005-B transaction featured a 3.8-year, double-A plus rated M1 tranche which priced at 85 basis points over swaps, flat to guidance. The 3.4-year, split-rated M2 tranche priced at 95 basis points over swaps, also flat to guidance.
Lehman Brothers priced a $400 million home equity deal un-rated by Moody's Investors Service and Fitch Ratings. The 2.4-year tranche of the deal priced at 27 basis points over one-month Libor, flat to guidance, and the other 2.4-year tranche of the deal priced at 125 basis points over swaps, also flat to guidance. The double-A tranche of the deal priced at 175 basis points over swaps.
From the credit card sector, MBNA America Bank brought a $300 million single-tranche deal via Deutsche Bank and RBS Greenwich Capital. The triple-B-rated, three-year tranche priced at 27 basis points over Libor, on the wide end of guidance set in the 26 basis points to 27 basis point range over one-month Libor.
A host of deals were left on the table as of press time last week. AmeriQuest Mortgage was shopping a $2 billion home equity deal joint led-by Barclays Capital and Morgan Stanley. UBS had an $891 million Alt-B MBS deal left to price, and Equity One was circulating its $817 million home equity offering through Friedman Billings Ramsey and RBS Greenwich, which had launched and was expected to price Friday.
Aegis Mortgage also had a $706 million subprime MBS deal on the table, being led by Bear Stearns. Deutsche Bank was shopping its own $627 million transaction, while SG Corporate & Investment Banking was circulating its $500 million home equity deal - its first dealer shelf offering ever - via Bear Stearns.
Great America Leasing had a $266 million deal left on the table. The deal was led by Wachovia and is backed by office equipment loans. Universal Compression Inc. was in the market with a $200 million deal backed by revenues from natural gas compressors. The deal, backed by a 100% Ambac wrap is also led by Wachovia Securities. Finally, Merrill Lynch was in the market with a $113 million deal backed by program exceptions.
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