The U.S. ABS primary market priced roughly $6.2 billion in new issue as of last Thursday's market close, about half of the volume churned out the preceding week. The auto sector had another active week pricing over $2.8 billion. Despite being fed $8 billion in auto supply the week prior, investors showed no signs of being sated (see story, p. 9).
Benchmark issuer American Honda Finance came with its first deal of 2005 via Barclays Capital and Deutsche Bank Securities. The $1.3 billion offering priced at similar levels to last week's record tights in the sector. The one-year triple-A rated notes hit in line with guidance to yield one basis point under EDSF, while the two-year class A3 notes, priced on the tight side of talk at two points under swaps relative to guidance in the one to two basis point area under swaps. The longer-dated seniors, with a 3.26-year average life, cleared flat to swaps, one point inside guidance of one basis point over the benchmark.