Market sources expected new issuance to total slightly more than $15 billion last week, thanks in no small part to continued demand for HEL tranches that will feed into CDO transactions. By press time, about a third of expected issuance had hit the market and priced.
Among deals that priced was the $824 million Goldman Sachs' GSAMP 2006-HE7 transaction. The deal priced against one-month Libor. The one-year, triple-A rated tranche came in at five basis points over, while investors that took the double-B rated, 4.33-year positions were rewarded with spreads at 775 basis points over the same benchmark.