Boosted by a mammoth, multi-currency, global U.K. MBS, the U.S. ABS market priced $14.8 billion of domestic supply last week, assuming the $2.2 billion set to price Friday. Autos, credit cards and home equities were all fairly represented and the student loan sector saw a first-time issuer price a deal. With two months down in 2003, total issuance for the year tops $49 billion, almost 27% ahead of last year's pace, according to Banc One Capital Markets.
Due to the $5.7 billion in foreign MBS supply, the mortgage sector saw the most activity last week, pricing $6.2 billion total. Aside from the $7.5 billion (U.S. dollar equivalent) from Permanent Financing HBos No. 2 shelf, consisting of U.S. dollar, British Pound and Eurodollar tranches. The second transaction of the year was led by the four-way joint-leads of Credit Suisse First Boston, Deutsche Bank Securities, Lehman Brothers and JPMorgan Securities, with Lehman and JPMorgan splitting the additional responsibilities of leading the roughly $300 million in subordinates.