Wedged between a conference week that emptied structuring offices and trading desks, plus the upcoming Thanksgiving holiday, the securitization market rolled up it sleeves to make last week count. By press time, market professionals expected to see $20 billion in deals come to market, and of that amount, about $7 billion had priced.

Spreads widened significantly and rolled right into double-digit areas on some deals,

like the $462 million Bayview Financial Acquisition Trust 2006-C. Secured by nonprime mortgages, the deal came to market via Citigroup Global Markets. The floating-rate transaction priced its one-year tranche at 30 basis points over the EDSF. At the low end of the credit spectrum, the triple-B rated, 5.35-year piece came in at 205 basis points over. That trade reflected the quality of the collateral, the fact that the coupon was fixed-rate, plus heavy issuance volume that made prompted softer bids from issuers looking to sell their notes to investors, said one market source.

"Investors are thinking they might not have a ton of cash to put to work," one market professional said. "They are pushing back on certain ends of the curve, whether [the deal] is residential or not residential."

Another nonprime mortgage transaction, Harborview Mortgage Loan Trust 2006-10, came to market with RBS Greenwich Capital Markets at the helm. It priced its three-year tranche, rated AAA', at 18 basis points over the one-month Libor.

USAA Auto Owner Trust, at least, enjoyed slim spreads on its $1.6 billion transaction, which came to market via Barclays Capital and Deutsche Banc Securities. The short-term tranche came in at four basis points under the four-month Libor, while the triple-A rated, 3.37-year piece, came in at four basis points over swaps.

An equipment deal, the CIT Equipment Collateral transaction, also priced its short-term notes at four basis points under its benchmark, the Euribor. Spreads remained tight on the triple-A rated, 1.2-year tranche, which priced at one basis point over the EDSF. Barclays Capital also managed that transaction, along with Morgan Stanley. Investors who took the long portion of the deal, which was also rated BBB', walked away with 35 basis points over EDSF.

A host of deals from a lot of different issuers waited in the wings at press time, as Ford Motor Credit was prepping a $3 billion transaction, Capital One was readying its $1.7 billion deal, Nissan Auto Receivables Owner Trust was in the market with a $1.7 billion transaction and Credit Acceptance hoped to do a $100 million deal. Drivetime 2006-B also was in the market with an MBIA-wrapped $305 million transaction.

"A lot of guys are wrapping it up for the year," a market professional said.

Student loan ABS issuer Sallie Mae was preparing a massive $4.2 billion deal, while USXL was putting together a $311 million equipment lease transaction.

(c) 2006 Asset Securitization Report and SourceMedia, Inc. All Rights Reserved.

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