At $182.4 million, the Jersey Central Power & Light stranded cost transaction was not expected to make an enormous splash on the ABS primary issuance market last week. Still, it attracted attention from some traders simply because of the diminishing presence of stranded cost ABS issuances in the lineup of deals.
Portions of the JCP&L Transition Funding II priced slightly wide of market expectations, particularly the 10-year piece. That portion of the deal came in at 10 basis points over swaps, which was wide over the prevailing five basis point spread for 10-year credit cards over swaps. The last time that the issuer came to market, its 10-year piece priced at seven basis points over, said a market player familiar with the situation.