New issuance has continued to run into problems of late, though the timing of new deals was not delayed on recent new offerings. Spreads have continued their widening trend over the past two weeks in the primary markets, with the senior triple-As actually reaching out beyond 25 basis points over swaps triple-Bs were well over 100 basis points over, and the steepening of the credit curve garnered more attention than the Treasury curve's moves of late. The pipeline may have been "yawning," but once supply was absorbed off this record month, account appetites were expected to reawaken and prove less selective.

Over the same time period, the secondary market was slightly below average in supply via bid lists, while dealer offering sheets were almost unchanged on cash spreads. Offerings held steady on most secondary benchmark issues, with the primary/secondary clearing differential at about three basis points on A4s. The conclusion of March's heavy pipeline was expected to lend further bid interest to secondary triple-As, as "under allocated" accounts off new deals will be on the prowl to put money to work.

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