The ABS primary market steamed onward into the first official week of summer as $25 billion in new issues were in the market. By some calculations the market has already outpaced 2004 year-to-date by nearly $150 billion in issuance, and no one seems to be expecting a slowdown anytime soon.
The home-equity sector was dominated by a monster-sized $2.9 billion home equity deal from Long Beach Mortgage, led by RBS Greenwich Capital and Wachovia Securities. Its two-year tranche priced at 17 basis points over one-month Libor, while the 3.50-year tranche priced at 27 basis points over one-month Libor. The seven-year tranche priced at 40 basis points over one-month Libor, versus guidance in the 39 basis point area.