New-issue supply has taken an expected dip this week, as year-end rapidly approaches. Capital One's credit card ABS, which priced Tuesday, and the stranded cost ABS from Atlantic City Electric lead the way for almost $4 billion of supply. Also, GMAC-RFC wrapped up its fifth mortgage-related ABS of the month - a $1.75 billion deal reom its RAMP issuance vehicle.
GMAC-RFC, which opens its proverbial floodgates in the third month of each quarter, completed Wednesday its fixed- and floating-rate 2003-RS11 deal via joint lead managers JPMorgan Securities and RFC Securities. GMAC-RFC's triple-A one-year AI1 priced at 19 basis points over one-month Libor. Three-year senior AI3 notes priced at 79 basis points over swaps and five-year AI5 notes priced to yield 145 basis points over swaps. Floating-rate AII1 paper, with a 2.6-year average life priced at 33 basis points over one-month Libor.
Capital One's $150 1million five-year triple-B rated transaction priced within price guidance at 115 basis points over one-month Libor. Lehman Brothers led the offering, which was increased to $150 million from the initial $100 million. This compares to the most recent triple-B credit card deal priced Oct. 21 at 185 basis points over swaps, and subsequently tightened significantly.
A.C. Electric's series 2003 stranded cost securitization, the second ever for the issuer, is slated to price before the week ends. Following a slight restructuring Wednesday, the three-tranche fixed-rate deal, led by Morgan Stanley, was tweaked from the initial single-tranche capital structure. The transaction now has three-year, 8.25-year and 13-year triple-A classes. A.C. Electric's 2002 RRB, also via Morgan Stanley, priced its seven-year tranche at 28 basis points over swaps to yield 4.235%.
Also pricing on the week is a $317 million business loan ABS from ACAS via Wachovia Securities and a $434 million home equity ABS from Banc of America Securities shelf ABFC, backed by Option One Mortgage-originated collateral.