New-issue ABS volume soared last week, with $16 billion having priced and up to $2 billion left in the pipeline for this week. The auto sector led the way last week, pricing over $7 billion of supply split among loan, lease and floorplan receivables. There were also credit card, global MBS, student loan-backed deals to go with the standard flow of mortgage-related transactions, which totaled roughly $5.5 billion.
Most of the auto supply was snapped up quickly by investors after being in the market for only a day or two. Represented were foreign captives with prime collateral, domestic independents with non-prime collateral and a heavy-duty commercial truck loan offering. One offering, however, felt the wrath of investors, who, rightly so or not, are fully aware of credit risk in ABS.