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.