The ABS primary market exploded last week, with roughly $18 billion of supply offered to investors, As of late in the week, $12.8 billion had priced, with the remainder, primarily mortgage-related supply, scheduled to wrap up on Friday or early this week. Transactions received strong demand that led to numerous increases in size and spread tightening prior to printing. Also, the market saw a return of the auto loan sector, which priced over $5 billion, after a month of sporadic issuance.

Captive and independent auto lenders alike could be seen, despite a surprise announcement from Standard & Poor's that sent ripples through the lease sector of the auto ABS market (see story p 1). Auto supply came in the form of prime, non prime and even super-prime motorcycle collateral.

A pair of $1.5 billion transactions from opposite ends of the credit spectrum - one from American Honda Finance and the other from WFS Financial - each got done, as did as AmeriCredit Corp., which tapped the market for the second time in three weeks. Honda's $1.5 billion 2003-2 offering via Barclays Capital and JPMorgan Securities quickly priced early in the week, clearing at levels one-to-two basis points outside of where BMW Vehicle Owner Trust 2003-A priced April 22.

One-year spreads came in to yield six basis points over EDSF, with two-year levels at four basis points over swaps. Three-year A4 paper priced at three basis points over Swaps.

WFS Financial priced its unwrapped 2003-2 offering via Banc of America Securities later in the week, offering investors significant yield pick up. Spreads for one-year A2 supply came in at eight basis points over EDSF, with two-year A3 notes pricing at 18 basis points over swaps. Out on the curve, 3.3-year A4 notes came in at 30 basis points over swaps.

AmeriCredit Corp. was also seen with a successful transaction, through joint leads Credit Suisse First Boston and Deutsche Bank Securities. AMCAR 2003-B-X, backed by a XL Capital wrap, totaled $825 million and priced inside of initial price guidance across the board. One-year supply, offered in both fixed- and floating-rate classes, priced at 28 basis points over EDSF and 19 basis points over one-month Libor, respectively. Two-year A3 priced at 48 basis points over swaps and three-year paper, also split betwixt fixed- and floating-rate bonds, came in at 58 basis points over swaps and 38 basis points over one-month Libor.

Harley-Davidson's $452 million 2003-2 deal rivaled Honda on a spread basis pricing even with the Japanese captive lender on the classes with comparable tenors. One-year A1s cleared at 6 basis points over EDSF and 2.8-year A2s priced at five over swaps. Additionally, Harley's single-A rated sub class, with a 3.07-year average life, priced at 38 basis points over swaps.

The equipment lease sector saw a pair of specialty leasing firms tap the market for the first time this year. Agricultural and construction equipment manufacturer CNH Global brought $972 billion of bonds via JPMorgan, while medical equipment finance company DVI Inc. completed its $426 million offering via Merrill Lynch.

CNH, formerly Case New Holland, priced at two basis points inside of guidance across the board. DVI, meanwhile, priced the majority of its senior notes within guidance, while subordinates widened roughly 20 basis points from initial talk.

Bank One was the only credit card issuer seen last week, with a $500 million triple-A 2003-A4 offering from the BOIT issuance vehicle. The 10-year floating-rate class priced at 25 basis points over one-month Libor.

In the home equity sector, supply was fast and furious, with independent lenders and principal finance vehicles alike seen with large offerings. GMAC-RFC sold $1.3 billion from its subprime RASC shelf through Bear Stearns and Citigroup Global Markets. Saxon Capital Inc. sold $600 million of fixed- and floating-rate series 2003-2 home equity paper via CSFB. Late in the week, Long Beach Mortgage was marketing, but had yet to price $1.5 billion notes, featuring a partial Fannie Mae W series wrap through CSFB and Deutsche Bank.

Offerings from bank issuance vehicles included UBS Warburg's Master Trust, with a $750 million deal and a $483 million HELOC from the MSDW Capital Corp. shelf.

Also marketing were numerous smaller deals from off-the-run issuers. Greenthal Management Corp., which operates tenement buildings in New York, had a small $140 million single-tranche, single-A rated offering in the market at a hefty 360 basis point spread to EDSF for the 1.4-year paper. First Franklin was shopping $257 million of subprime paper and Accredited Home Lenders was seen with $303 million of supply.

The week's supply numbers are bolstered by a pair of U.K. MBS securitizations, from Northern Rock plc and The Bank of Scotland, which together total $6 billion. Northern Rock's Granite Trust priced $2.6 billion of U.S. dollar denominated supply via Citigroup, JPMorgan and UBS Warburg. The Bank of Scotland $3.4 billion deal is being offered via CSFB in multiple currencies from the bank's Mound 3 issuance vehicle.

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