There was no quarter-end rush to the ABS primary market, as June has seen steady new issue supply. Just under $8 billion made the rounds, with a pair of large trades targeted for late in the week. The week was dominated by smaller deals from off-the-run issuers, with the exception of the credit card sector, which saw the three leading names tap the market with de-linked structures.
Bank One, Citibank and MBNA America Bank each priced deals to typical strong demand, with Bank One increasing its offering slightly. The $125 million single-A rated 2003-B2 three-year floating-rate deal from BOIT came and went quickly late last week, pricing at 23 basis points over one-month Libor. MBNA tapped the market for $650 million of five-year fixed-rate triple-As via Banc of America Securities and Credit Suisse First Boston, to yield 11 basis points over swaps. Citibank brought an unusual $650 million 12-year fixed-rate senior offering, which priced at 87 basis points over 10-year Treasurys.
Auto supply last week consisted of a $135 million subprime deal from Drivetime Auto, formerly Ugly Duckling, in the Rule 144A market via RBS Greenwich. The second ABS of the year from Drivetime was backed by a full XLCA wrap.
Truck manufacturer Navistar International tapped its recent floorplan shelf to price its first wholesale floorplan deal in three years, a $212 million 2003-1 deal via sole manager BofA. Navistar priced its $200 million three-year senior tranche at 30 basis points over one-month Libor, with the yet-to-be-priced single-A rated subs talked 45 basis points back of the triple-As. Pricing for the sub class was expected Friday.
Household Finance offered its second offering from its HC issuance vehicle. The $1.2 billion senior/sub offering priced via Lehman Brothers and Morgan Stanley within price guidance. The $997 million 2.3-year senior class priced at 35 basis points over one-month Libor, and its double-A rated mezzanine class at 65 basis points over Libor.
Countrywide Home Loans priced $830 million of fixed- and floating-rate notes, over the previous Friday to Monday period. Three-year floating-rate 2A2 notes priced at 30 basis points over one-month Libor, and the single-A M5 class, with a 4.6-year average life, priced at 175 basis points over.
AmeriQuest's scratch and dent shelf, Quest Mortgage Trust, priced $145 million of floating-rate notes via Banc One Capital Markets. The $114 million triple-A senior class, with a 1.8-year average life, priced at 49 basis points over one-month Libor. Down in credit, 4.3-year single-A plus M2 notes, the lowest rated tranche offered, priced at 350 basis points over Libor.
Provident Bank's first mortgage loan-backed offering since 2000, $375 million of 5/1 hybrid collateral priced via RBS Greenwich. With its 2.5-year seniors clearing at 155 basis points over swaps.
Late in the week, Long Beach Mortgage was showing a $2 billion series 2003-4 deal that was scheduled for late last or early this week. InterStar Millennium was marketing $800 million of Australian MBS consisting of U.S. dollar, Euro and Aussie dollar-denominated classes.
Looking ahead Sallie Mae is prepping a $2.5 billion (U.S. dollar equivalent) of a series 2003-7 multi-currency student loan-backed deal, its ninth student loan deal of 2003, and the seventh to be backed by FFELP collateral. There was no word, as of press time, as to which banks would underwrite the offering.