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.