With the Labor Day holiday out of the way, a large amount of corporate issuance kept the asset-backed securities market quiet. By the end of the week, two well received deals and an unusually large bid list helped create some demand in what market observers are saying will be an active September.
American Express priced a $713 million transaction, with the triple-A rated tranche pricing at 14 basis points over the one-month Libor. The deal priced at tighter levels than any comparable credit card deals this year, yet at least one observer thought it could have priced even tighter. At one point, the company reported that the transaction was three times oversubscribed. "It doesn't happen very often," an ABS trader said.