The U.S. ABS primary market kept pace in between conferences to price close to $11 billion last week as of Thursday's market close, as real estate ABS accounted for $4.5 billion of the total volume.
Fremont Mortgage was in the market with a $1.2 billion offering via Credit Suisse First Boston. The senior classes priced in line with expectations, while spreads on some of the mezzanine bonds tightened slightly. The three-year triple-A rated notes were on target at 24 basis points over one-month Libor, with the 6.43-year senior notes clearing guidance at 35 points over Libor. The double-A plus class, with a 4.65-year average life, priced tightened to 43 basis points over one-month Libor versus guidance at 45 points over Libor. The 4.51-year triple-B minus notes came on the tight side of guidance at 200 points over Libor relative to forecasts between 200 and 210 points over Libor.