Trading on the ABS market was fairly light last week, as more than 3,000 market professionals prepared to head out to Orlando, Fla for Information Management Network's ABS East conference. By midweek, about $10 billion in deals were announced, and of that $3.8 billion had priced.
"If they are not out now," said one trader of deals in the pipeline, then the transactions are likely to be put on the back burner until industry professionals return from Orlando late this week. Synthetic deals saw slightly more activity, according to Bank of America, and single-name CDS spreads remained unchanged after moderate two-way trading volumes remained moderate for the second straight day.
As usual, home equity loans dominated actual and expected issuance, although it was a credit card deal, the COMET 2006-A14 that kicked off the week's pricing activity. Underwritten by Deutsche Bank, the single-tranche $500 million deal priced at a thin margin, just one basis point over the one-month Libor.
Marriott's $280 million Marriott Vacation Club Owner Trust, 2006-2 timeshare deal came to market via Credit Suisse and Citigroup Global Markets. Barclays Capital got the co-manager role. The floating-rate notes had a 3.52-year average life throughout. Pricing on the 144a transaction was generally within guidance, as the triple-a rated tranche came in at 30 basis points over interpolated swaps and the triple-B piece priced at 95 over.
Among home equity loans, the $1.25 billion Asset Backed Securities Corp. Home Equity 2006-HE6 priced, coming to market from the Credit Suisse shelf.
Such restrained pricing left a long list of anticipated deals. Washington Mutual announced a $600 million credit card deal; Fosse, the GBP2,503 billion ($4.7 billion) home equity loan deal, continued to circulate; and Household Home Equity Loan Trust was in the market with a $1.1 billion transaction. The market also anticipated a $1.25 billion dealer floorplan transaction from GE, a $975 million home equity transaction from Long Beach Mortgage, and another large HEL deal, the $1.3 billion from Impac Secured Assets Corp.
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