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HEL ABS dominates new-issue calendar

The U.S. ABS primary market remained active last week, despite the field trip to Scottsdale, Ariz. for the American Securitization Forum's 2005 annual conference. New-issue volume totaled roughly $6.2 billion, with home equity ABS accounting for a vast majority.

Additionally, the secondary markets were unusually active last week, with over $6 billion put out on bid lists, according to analysts at Credit Suisse First Boston.

As of Thursday's market close, seven real estate ABS deals had priced for the week. Morgan Stanley priced a $1.1 billion off of its ABS Capital dealer shelf, the first to come off the vehicle in 2005. The offering priced largely in line with guidance. The 2.41-year triple-A rated notes came within expectations at 29 basis points over one-month Libor relative to guidance in the 28 to 30 point over Libor area. Spreads gapped out on the five-year mezzanine class, which hit at 47 basis points over Libor versus guidance in the 43 to 45 points over Libor range. The 4.96-year M2 class came similarly outside of guidance at 49 basis points over one-month Libor after being talked in the 45 to 47 basis point range over Libor. Spreads came back in toward the bottom of the capital structure, with the triple-B rated 4.87-year notes clearing at 130 basis points over one-month Libor relative to talk in the 135 basis point area over Libor. The 4.86-year subordinates also priced tight at 215 points over one-month Libor versus guidance in the 225 basis point area over Libor.

Morgan Stanley also brought a $753.6 million single-tranche HELOC offering via its MSDWCC HELOC Trust. The 2.67-year triple-A rated class cleared 19 basis points over one-month Libor versus talk in the 20 basis point area over Libor.

Deutsche Bank Securities came with a deal off of its ACE Securities dealer shelf. The $561.3 million offering priced outside of guidance across much of the credit spectrum. The three-year senior notes came at 23 points over one-month Libor compared to talk in the 21 basis point area over Libor. The 4.99-year double-A plus rated notes also priced wide at 48 basis points over one-month Libor relative to talk in the 43 area over Libor. There was some tightening down in credit, with the triple-B rated M8 class with a 4.8-year average life clearing at 138 basis points over Libor relative to guidance at 140 basis points over one-month Libor. The triple-B minus notes of the same duration also tightened to 220 over Libor versus talk in the 225 basis point area over Libor.

Security National Bank was in the market with a $159.7 million overwhelmingly fixed-rate offering off of its own shelf. Investors showed a healthy appetite for the infrequent home equity issuer's bonds, and the deal priced on target across the board. The 6.16-year triple-A rated notes priced at 150 basis points over swaps. The triple-B rated subordinates, with a 5.7-year average life, were also on the mark at 350 basis points over swaps.

AmeriQuest Mortgage tapped the market for $1.48 billion via BNP Paribas and Citigroup Global Markets. The three year triple-A rated notes priced just inside of guidance at 21 basis points over one-month Libor relative to talk in the 22 basis point area. The 6.97-year senior notes came on target at 35 basis points over one-month Libor. The 4.78-year mezzanine notes came inside of expectations at 48 basis points over one-month Libor relative to talk in the 50 basis point area

over Libor.

Goldman Sachs was in the market with a $462 million GSAMP deal off of its dealer shelf. The triple-A rated notes, with a three-year average life, priced at

20 basis points over one-month Libor, while the 6.75-year seniors cleared at 38 basis points over Libor. The split-rated 4.91-year subordinates hit at 220 points over one-month Libor.

HomeStar Mortgage Acceptance Corp. came with $801.62 million via Citigroup Global Markets from its newly minted shelf - Opteum 2005-1 - which priced in line with expectations throughout the capital structure. The one-year triple-A rated notes were on target at 14 basis points over one-month Libor, while the 6.84-year seniors came with guidance set at 40 basis points over one-month Libor. Down in credit, the double-A minus notes, with a 5.23-year average life, priced at 57 points over Libor. The single-A plus notes of the same duration also priced on target at 77 basis points over one-month Libor. The triple-B minus notes, with a 4.9-year average life, cleared at 250 basis points over Libor, also within guidance.

Auto ABS was still running last week with a $900 million offering from AmeriCredit Corp. backed by nonprime retail loans. JPMorgan Securities and Wachovia Securities shared the lead mandate. The 2.10-year triple-A rated notes priced with guidance at six basis points over swaps. The longer-dated seniors, with a 3.42-year average life, also came in line with talk at 12 basis points over swaps.

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