For the second week in a row, the U.S. ABS primary market has generated $13 billion in new issuance. As usual, the calendar was dominated by real estate related deals, with three credit card deals, an auto deal, a student loan deal and an insurance receivables deal sneaking their way into the market.

The largest deal to hit the market last week was a $2.38 billion offering out of Lehman Brother's Structured Asset Investment Trust, backed by subprime MBS. The 2.5-year A1 tranche of the deal priced at 29.5 basis points over one-month Libor, with the two-year tranche at 20 basis points over one-month Libor. The five-year A3 tranche at 36 basis points over one-month Libor, and the one-year A4 tranche pricing at 11 basis points over one-month Libor. Lehman also had an $884 million second lien MBS offering in the market, off its Structured Asset Securities Corp. Trust, which priced wide of guidance almost all the way down the capital structure.

SoundView Mortgage brought an $827 million home equity transaction led by RBS Greenwich Capital. The first six tranches of the deal priced spot-on or tight to guidance, with the one-year tranche coming in at 10 basis points over one-month Libor, flat to guidance. The two-year tranche of the deal cleared at 18 basis points over one-month Libor, flat to guidance and the 3.5-year 2A3 class pricing at 26 basis points over one-month Libor, one basis point inside of talk.

CDC IXIS was also in the market with an $825 million home equity transaction led by Morgan Stanley with a one-year tranche that priced at 11 basis points over one-month Libor, on the wide end of guidance in the 10 to 11 basis point range over one-month Libor. The three-year A2tranche priced at 24 basis points over one-month Libor, on the tight edge of guidance set at 24 to 25 basis points over one-month Libor.

C-BASS priced a $400 million subprime MBS led by JPMorgan Securities. The one-year tranche of the deal priced at 23 basis points over EDSF, with the two-year tranche of the deal pricing at 30 basis points over swaps, and the 4.36-year tranche of the deal at 69 basis points over swaps, well inside guidance as high as 75 basis points over.

Deutsche Bank priced a $305 million ACE Securities Trust transaction, with a one-year tranche that priced flat to guidance at 12 basis points over one-month Libor and a two-year tranche that priced at 21 basis points over one-month Libor. The three-year A2Ctranche priced at 27 basis points over one-month Libor, also in-line with guidance.

Not to be left out of the party, Countrywide Home Loans priced a $206 million series 2005-SD3 deal backed by program exceptions. The 2.5-year A1 tranche priced 37 basis points over one-month Libor and the one-year A1A tranche of the deal priced at 17 basis points over one-month Libor. The 2.6-year A1B class priced at 34 basis points over one-month Libor.

The timeshare sector hosted a rare deal last week, with Marriott Vacation Club International offering a $230 million deal. The four-year, four-tranche deal priced a triple-A-rated tranche at 34 basis points over swaps, with a double-A rated B tranche pricing at 43 basis points over swaps. The series 2005-2 deal was led jointly by Citigroup Global Markets and Credit Suisse First Boston.

In the auto sector, HSBC Securities priced a $905 million deal on behalf of Household Finance, with the 2a7 money-market tranche pricing flat to four-month Libor and a one-year A2 tranche that priced at five basis points over EDSF. The two-year tranche of the deal priced at seven basis points over swaps, while the three-year tranche of the deal priced at 15 basis points over swaps.

The credit card sector was well populated last week, with a $875 million seven-year deal from Citibank, N.A., which priced flat to guidance at seven basis points over one-month Libor. Chase Manhattan Bank, N.A. also priced a seven-year $750 million 2005-A11 offering that priced at seven basis points over one-month Libor. MBNA America Bank rounded out last week's credit card roster with a $150 million single-A rated three-year deal led by Banc of America Securities that priced to yield 14 basis points over swaps.

GCO Education Loan Funding Corp. was in the market with a $600 million FFELP collateral deal led by Citigroup. The three-year tranche of the deal priced at three basis points over three-month Libor, while the seven-year A5L tranche priced at 12 basis points over three-month Libor and the 10-year A6L class pricing at 15 basis points over three-month Libor.

Only other deal to price was a $529.5 million deal backed by insurance premiums from American International Group led by Citigroup. The three-year, three-tranche deal priced its triple-A rated A tranche at eight basis points over one-month Libor and its single-A rated tranche at 25 basis points over one-month Libor, with a triple-B rated C tranche at 55 basis points over one-month Libor.

Of the deals left on the table for the week, Ownit Mortgage Solutions had an $861 million MBS deal in the market with Merrill as the lead, Bear Stearns had a $670 million home equity deal yet to price, while CSFB had a $610 million home equity deal circulating. Bear also had a $396 million scratch and dent deal in the market and a $250 million subprime MBS deal being shopped. BayView Mortgage was also in the midst of shopping a $240 million home equity deal.

(c) 2005 Asset Securitization Report and SourceMedia, Inc. All Rights Reserved.

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