The U.S. primary ABS market priced upwards of $7 billion during the abbreviated week leading into the Easter weekend. Volume was slightly down relative to the three weeks prior, which all saw volume of over $10 billion. The real estate sector comprised over $4.1 billion in total volume last week.
A $2.3 billion offering from Countrywide Securities accounted for the bulk of home equity issuance. The offering priced wide at points throughout the capital structure. At the top, one-year senior floaters priced at 12 basis points over one-month Libor versus guidance at 10 basis point area over Libor. The fixed-rate senior class of the same duration was similarly outside of expectations at 17 basis points over EDSF relative to talk set in the 15 basis point area over EDSF. The triple-A fixed-rate notes, with a two-year average life, were five basis points outside of talk at 20 basis point area over swaps versus talk set in the 15 basis point area over swaps. Down in credit, 4.07-year subordinates priced at 130 basis points over one-month Libor versus guidance in the 120 basis point area over Libor.
GMAC-Residential Funding Corp. tapped the market for $741 million backed by program exceptions via Bear Stearns. Triple-A rated notes with a three-year average life cleared at 17 basis points over one-month Libor. The 4.67-year triple-B minus class cleared at 195 basis points over Libor.
GreenPoint Financial Corp. came with a $1 billion HELOC offering via RBS Greenwich Capital Markets, the first HELOC transaction to price since the passing of the American Jobs Creation Act last year, which allowed for unwrapped HELOCs (see ASR 12/6/04). The triple-A rated 3.5-year A3 class cleared at 17 basis points over one-month Libor. The 4.4-year mezzanine notes - one of five mezzanine classes that did not carry a rating from Moody's Investors Service - cleared at 45 basis points over Libor. Moody's hopped back on the deal down in credit to assign a Baa2' rating to the 4.33-year M7 class, below the ratings from both Fitch Ratings and Standard & Poor's.
The auto sector had a relatively busy week, with three deals pricing as of Wednesday's market close. Hann Financial was in the market with a $329 million offering via Barclays Capital backed by retail leases. Notably, the deal carried a rating from Canadian newcomer Dominion Bond Rating Service. It did not, however, have a rating from Fitch. The 1.25-year A2 notes cleared at 30 basis points over swaps.
DriveTime Auto completed the $230 million offering it had in the market from the previous week, with RBS Greenwich holding a rare lead mandate in the auto sector. The nonprime offering was wrapped by MBIA. The 2.23-year A3 class priced at 17 basis points over swaps.
WFS Financial tapped the market for $1.46 billion backed by nonprime loans via joint lead managers Banc of America Securities and Citigroup Global Markets. The 2.10-year senior notes priced wide at nine basis points over Swaps relative to talk in the seven to eight basis points range. The triple-B rated notes, with a 3.55-year average life, cleared at 48 basis points over one-month Libor, relative to talk in the high-40 basis point area over Libor.
GE Capital Corp. came with a $952 million offering off of its GE Capital Credit Card Master Note Trust. BofA and JPMorgan Securities acted as joint leads. The five-year senior notes cleared at 4 basis points over one-month Libor. The 4.78-year single-A class priced at 17 basis points over Libor, down in credit, the 4.67-year subordinated notes priced at 34 basis points over Libor, inside of talk in the 35 to 36 basis point range.
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