Investors from all corners of the ABS market, especially those from Europe, came out in full force last week. With such demand for ABS paper, market players expected the week's deal tally to reach $20 billion.
RMBS issuers from the U.K., Arran Funding and Granite, tipped the scales with issuance totaling $12 billion. Granite Master Issuer 2006-3 plowed $6 billion onto the market, requiring no less than seven lead managers to tame the three-currency transaction and bring it to investors. They were: Citigroup Global Markets, Lehman Brothers, UBS, Morgan Stanley, JPMorgan Securities, Barclays Capital and Merrill Lynch. The most senior tranche, a $1 billion, 0.95-year average life piece, sold stateside at two basis points over the one-month Libor.