Primary market activity remained in the forefront last week with a number of deals pricing and an unrelenting pipeline that promises a busy run-up to summer. Secondary trading continued to be muted by primary volumes. Recent new issues were holding at or inside re-offer on the break, with little being seen on the offer side from the sizable corporate loan deals that have recently priced.
Marketing is underway for Peugeot's French captive leasing division 1.25 billion ($1.56 billion) deal, FCC Auto ABS Compartiment 2006-1. The leases were for new cars to individuals and small businesses. The transaction offers two tranches, including 1.2 billion of triple-A rated notes with a 4.4-year average life and 132 million of single-A rated notes with a 6.2-year average life. This is Peugeot's fourth transaction, its last deal, which was backed by German receivables, priced in February 2004.