The ABS primary priced $9.2 billion last week, in a slow to develop market that was overshadowed by bid lists and secondary activity early in the week. But by Wednesday, with the quarter-end rapidly approaching, new issues flooded into the market. Pent up investor demand led to bonds of some offerings flying out the window, printing in just one session.

This was the case for Volkswagen Credit Corp., which quickly priced its first auto loan ABS in three years last Wednesday. Led jointly by Banc One Capital Markets and Morgan Stanley Dean Witter, VW priced a $1.2 billion, fixed-rate, series 2003-1 transaction in line with price guidance and on par with the top captive finance companies in the sector.

Short-term 2a7 eligible A1 notes priced at five basis points under four-month Libor and one-year A2 notes priced to yield five basis points over EDSF. Two-year A3 notes came in at six basis points and three-year A4 notes priced at three basis points over comparable swaps. The three basis point print for three-year A4, ties VW 2003-1 for the second tightest print of the year for three-year auto paper. March 13, Nissan Motor Credit priced its A4 tranche at three basis points over swaps and in February, BMW Motor Credit priced its three-year tranche at two basis points over swaps. The last time VW was seen in the market with auto loan collateral was August 2000, when it sold $500 million via Morgan Stanley.

Arguably the top performer in the primary last week was the $390 million business loan ABS from General Electric via Goldman Sachs and Wachovia Securities. The 5.6-year triple-A rated seniors priced at 43 basis points over one-month Libor, inside of guidance in the 45 to 50 basis point area. Single-A rated subs also fared well, tightening to price at 130 basis points over one-month Libor for the 5.6-year notes, versus guidance in the 140 to 150 basis point area. This was triple-A rated parent G.E.'s first business loan ABS offered in the term public market.

First time issuer in the term market, Credit Acceptance Corp. finished up a Radian wrapped auto deal it had circulated the previous week via Wachovia. The single-tranche offering, with a 0.96-year average life, priced at 175 basis points over EDSF, on target with indicative levels disseminated upon announcement.

Late in the week, Paramus, N.J.-based Long Beach Acceptance Corp. - not to be confused with former sister company, Orange, Calif.-based Long Beach Mortgage - announced a $250 million FSA-wrapped subprime auto deal via RBS Greenwich Capital. The second ABS of the year for Long Beach Acceptance offered all fixed-rate classes to investors and was expected to price either late last or early this week.

Chase Manhattan Bank led the way in the credit card market, with a $2.2 billion five-year trade that was increased in size to strong demand. The $1.19 billion triple-A class priced at 11 basis points over one-month Libor with the single-A rated A2 coming in 24 basis points back of the A1s. Triple-B C paper cleared at 108 basis points over Libor.

MBNA America Bank sold a small $100 million triple-B subordinate tranche from its MBNASeries issuance trust, the fourth triple-B sold in the U.S. this year. MBNASeries 2003-C5, with a five-year average life, priced via Lehman Brothers and JPMorgan Securities at 118 basis points over one-month Libor MBNASeries 2003-C4, a GBP200 million floater, priced overseas in late last month.

Sallie Mae completed the $1.3 billion private graduate student loan 2003-B ABS through the three-way joint leads of Citigroup, Deutsche Bank Securities and Merrill Lynch. After an extensive investor telemarketing campaign that did not include a roadshow, Sallie's second private loan ABS of the year came in at spreads comparable to the March 6, 2003-A deal, with the exception of the triple-B rated subs, which had to widen an actual 13 basis points prior to pricing.

With the 2.5-year A1 class pricing at 10 basis points over three-month Libor and 7.6-year A2s at 40 over, the 7.2-year triple-B rated C class priced at a discount margin of 168 basis points over three-month Libor, versus guidance in the 155 basis point area over.

To date, while just the second private loan ABS for Sallie, it is the eighth overall student loan securitization, for a total of $12.7 billion of Sallie paper hitting in the first six months of the year. In total term student loan ABS supply sits just under $17 billion.

Home equity supply continued unabated, as the whole loan market for mortgage product remains red hot despite perpetually high prices for portfolios. Sporadic home equity issuer Mid-State Trust priced $295 million of home equity loans originated by Walter Industries unit Jim Walter Homes. The XI series deal, led by Banc of America Securities and Lehman, for what is likely the only Mid-State issuance of the year.

Late in the week, GMAC-RFC brought yet another home equity ABS, this time backed by its scratch and dent collateral. RAMP 2003-RS5, led by Citigroup, features a full Ambac wrap and was on track for a last Friday pricing.

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