In the recent past, two instances of negative news from the subprime mortgage market might have rocked pricing on HEL issuances. That was not the case last week, even after NovaStar Financial wrapped up a $1.3 billion issuance just ahead of an announcement that it was exploring strategic alternatives for the company, and Accredited Home Lenders agreed to a major buyout.

Two home equity loan deals opened the week last Monday, abreast of news that Accredited agreed to a $400 million buyout from Lone Star Fund and that NovaStar saw its equity ratings downgraded. By press time, at least $3.9 billion of asset-backed securities priced, out of at least $8 billion in announced deals for the week.

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