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.

AmeriQuest Mortgage also issued a whopping $2.3 billion subprime MBS deal out of its Park Place Securities Trust vehicle. Led jointly by Citigroup Global Markets and UBS, four of the deal's senior tranches were wrapped by Fannie Mae. The two-year tranche priced on top of guidance at eight basis points over one-month Libor and the 3.25-year tranche priced 14 basis points over one-month Libor.

Credit Suisse First Boston brought a $981 million HEAT home equity deal, the one-year tranche of which priced at 11 basis points, two basis points wide of guidance. The three-year tranche priced on top of guidance at 25 basis points over one-month Libor but the 5.90-year tranche priced at 41 basis points over one-month Libor, two basis points outside of guidance.

GMAC-RFC priced a $620 million subprime MBS deal that priced wide of guidance around the horn. The one-year tranche priced at 10 basis points over one-month Libor, wide of talk set in the nine basis point area over. The two-year tranche priced at 16 basis points over one-month Libor, outside guidance in the 14 to 15 basis point range over, and the 6.32-year tranche priced at 37 basis points over one-month Libor, two basis points outside of 35 basis point over guidance.

Last to price in the real estate sector was a $500 million subprime MBS deal by First Franklin Mortgage led by Lehman Brothers. The three-year tranche of the deal priced at 25 basis points over one-month Libor, one basis point wide of guidance.

Still on the table as of press time was a $2.14 billion home equity deal from Countrywide Home Loans. The two-year tranche of the deal was being talked in the 25 basis point area over swaps, the three-year in the 30 basis point area over swaps and the five-year in the 70 basis point area over.

Deutsche Bank Securities was marketing a $1.4 billion home equity deal that, as of press time, was being talked in the 23 to 24 basis points over one-month Libor range for the three-year tranche. Bear Stearns had yet to price its $956 million home equity offering, the one-year tranche of which was being talked at 10 to 11 basis points over one-month Libor, and the seven-year tranche of which was being talked at 38 to 40 basis points over one-month Libor. GMAC-RFC was also marketing a $240 million deal backed by high LTV MBS loans.

The student loan sector saw a $2.3 billion offering from Sallie Mae led by Citigroup and Goldman Sachs. The three-year tranche of the deal priced flat to three-month Libor, the seven-year tranche priced on top of guidance at eight basis points over three-month Libor and the ten-year tranche priced ten basis points over three-month Libor.

General Electric priced a pair of credit card deals, one a $1 billion three-year deal that priced at one basis point over one-month Libor for the senior tranche. The other was a five-year $750 million floater, which saw its senior notes price at three basis points over swaps. ABN AMRO and JPMorgan Securities jointly led both offerings. Chase Manhattan Bank, N.A. had a four-year $700 million credit card deal that priced on top of guidance at two basis points over one-month Libor.

The auto sector was surprisingly sparse last week as only one automobile related deal was marketed. Wheels, Inc. was in the market with its first term ABS deal, a $500 million private placement led by JPMorgan.

The equipment sector saw a $750 million wholesale dealer floorplan deal issued by CNH Global, N.V. and led by Merrill Lynch and SG Corporate & Investment Banking. The three-year deal priced at 11 basis points over one-month Libor. CNH initially intended to bring two separate deals, a three-year and a five-year, to market but a source close to the deal said demand was so great for the three-year deal that the underwriters rolled both together into the three-year deal.

GE had a third deal in the market - a $660 million deal backed by small-to medium-enterprise loans, although pricing had yet to take place by late last week. The series 2005-1 offering was talked at eight to nine basis points over one-month Libor for the 2.5-year tranche, and 25 basis points over swaps for the five-year tranche. Citibank also had a $256 million 3.5-year FGIC-wrapped deal backed by mutual fund 12b-1 fees that priced at 25 basis points over one-month Libor.

(c) 2005 Asset Securitization Report and SourceMedia, Inc. All Rights Reserved.

http://www.asreport.com http://www.sourcemedia.com

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.