Over E7 billion worth of ABS has already priced in May, and it's likely that the market will sustain this momentum up until the Barcelona ABS conference that starts the first week of June.
Counted among the new issues last week was a $257.11 million equivalent Austrian-based auto lease securitization called Edelweiss Auto Funding. It is from the second biggest leasing lender in Austria - a subsidiary of Erste Bank. The Edelweiss transaction consisted of $246.8 million equivalent triple-A rated notes that priced at 32 basis points over the three-month Euribor, as well as $10.2 million in single-A rated notes that priced at 61 basis points over. So far this year, there has been only one other auto deal, but the market looks set to absorb the $409 million equivalent Athlon Securitisation, a Netherlands-based deal, before the June conference.
Marketing last week was a $132 million equivalent German synthetic RMBS - the second representation of this structure the market has seen so far this year. It's issued from the KfW Provide platform and is dubbed Provide Blue 2003-1 Plc. Like past structures, KfW will act as intermediary for the synthetic transfer of the credit risk of the reference portfolio, explained market sources. The deal is making the rounds with two triple-A pieces - a $29.2 million equivalent piece and a $54.10 million equivalent piece. The structure also includes $42.18 million equivalent double-A notes, $19.5 million equivalent single-A notes and $16 million equivalent triple-B notes.
Last week Dresdner Kleinwort Wasserstein priced a E600 million managed arbitrage cash flow CDO dubbed Rendite Finance No.2 Inc. The collateral manager was Allianz Dresdner Asset Management. Rendite priced its wrapped $653.7 million equivalent triple-A piece at 55 basis points over the six-month Euribor. The two unwrapped triple-A pieces priced at 70 basis points and 125 basis points.
Also marketing on the CDO front is the $116.8 million equivalent managed synthetic transaction dubbed High Tide CDO I S.A. issued by Zais Group Investment Advisors and managed by Citibank. The deal, which references ABS, is structured in $63.6 million equivalent triple-A rated notes, $19.8 million equivalent of Edouble-A plus rated notes and $33.8 million equivalent of single-A rated notes.
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