Banc of America Securities broke into the auto whole loan sector last week with an $890 million deal and emerged as the newest member of a cadre of investment banks that have moved into the sector in recent years. The deal, tagged BASAT 2005-WF1, consists of four triple-A senior tranches and $38 million of 2.86-year subordinated bonds, rated A3' by Moody's investors Service and A+' by Standard & Poor's. The triple-B rated C class was rated only by S&P.
Pricing last Wednesday, the money market 2a7 A1 tranche came in at one basis point over Libor, one basis point wide of talk, while the one-year A2 priced at two basis points over EDSF, in line with price guidance. The two-year A3 tranche, offered in the three basis point area over swaps, priced at one basis point over swaps. The 2.83-year A4 tranche priced flat to guidance at six basis points over swaps. Down in credit, the single-A rated B-tranche priced at 28 basis points over swaps and the C-tranche priced at 47 basis points over swaps.