BayView Financial Trading Group priced a $432 million home-equity deal last week, which included a small 4% to 5% sliver of franchise loans, the first batch to be financed in the securitization market this year.

The deal, which was joint led by Bear Stearns (books) and Lehman Brothers, was structured in six parts, with the triple-A A class pricing at 40 basis points over the one-month Libor, five points wide of talk (30-35). Similarly, the M1 and M2 classes priced outside of guidance by five and 10 points, respectively (see scorecard p.27).

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