About $10 billion in new securitization deals hit the market last week as of press time, slightly short of the $15 billion that market sources had predicted. After very heavy ABS deal issuance in the first quarter, production in April was light to moderate, said one trader.

The final week was no exception. Barclays Capital ushered in a $500 million credit card deal named World Financial Credit Card Master Trust. It priced at 13 basis points over one-month Libor for the triple-A rated six-year tranche. The single-A rated piece came in at 35 basis points over.

The long-awaited Ballantyne Re deal, a transaction secured by future premiums on life insurance policies, also priced. Lehman Brothers managed the deal. Although final pricing information was not available at press time, pricing talk put the ten-year tranche at 55 basis points over one-month Libor, while one of the subordinate pieces was expected to price at 200 basis points over.

"The week is basically over. What you see is what you get, from our perspective," said one trader by Thursday afternoon. Market sources are now hoping that activity will ramp up again significantly in May.

Home-equity deals dominate

Once again, home equity loans were the most active asset class last week. Ixis Real Estate Capital Trust, a home equity deal, came to market with a $981 million transaction via Morgan Stanley. The one-year tranche also priced at six basis points over one-month Libor, while the most subordinate portion of the deal was 550 basis points over. Asset Backed Securities Corp. Home Equity Loan Trust priced a $909 million deal via Credit Suisse. The most senior piece came in at six basis points over one-month Libor, while a four-year junior tranche priced at 200 basis points over. Residential Asset Mortgage Products priced a $375 million deal through Bear Stearns. The senior piece will pay seven points over one-month Libor, while the most junior rated piece priced at 220 points over the same benchmark.

Bear Stearns also managed a $676 million second-lien deal, called SACO I Trust. Structured with lots of subordination, the one-year tranche on that deal priced at 15 basis points over one-month Libor. Indymac Home Equity Loan Asset-Backed Trust came to market with a $316 million second-lien transaction via Goldman Sachs and UBS. The one-year piece priced at 10 basis points over Libor, while the five-year tranche was at 55 basis points over. GMAC-RFC RAMP came to market with a $368 million transaction via Bear Stearns and Barclays Capital.

Structured Asset Securities Corp. came to market with a $707 million second-lien deal, with Lehman Brothers acting as lead manager on the transaction. The two-year tranche priced at 12 basis points over Libor, while a junior, five-year tranche came in at 550 basis points over.

In the auto loan sector, Capital One Auto Finance Trust came to market with a $2 billion transaction, via Wachovia Capital Markets. The deal priced each of the four tranches with a different benchmark. The most senior piece came in at two basis points below Libor, while the junior piece came in at one basis point over the one-month Libor.

The credit card class also put in an appearance. Citibank Global Markets brought a $1 billion deal to market, via the trust Citibank Credit Card Issuance Trust. The one-tranche deal priced at five basis points below swaps.

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

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