New-issue ABS supply picked up last week, ahead of the Thanksgiving holiday and the three-day trading week that accompanies it. Roughly $25 billion was marketed last week, primarily in the form of large home equity deals, although there were numerous offerings in off-the-run assets such as shipping containers, time-share loans and insurance receivables.

Just two credit card offerings priced last week, although one was extremely large in size. In addition to the mammoth $2.5 billion five-year CCCIT 2003-A9 from Citibank N.A., a $400 million business credit card receivable-backed deal priced from Advanta Corp.

Hitting late in the week, Citibank's ninth triple-A senior credit card deal priced at the tightest level the sector has seen this year for five-year floating supply. Following an increase in size from the initial $2 billion, the deal priced at eight basis points over one-month Libor. In August, Citibank priced a five-year fixed-rate A8 transaction to yield seven basis points over swaps.

Led by Deutsche Bank Securities, Advanta priced its three-year triple-A floaters at 27 basis points over one-month Libor. Single-A and triple-B subordinates priced at 115 basis points and 290 basis points over one-month Libor, respectively - both inside of price guidance.

Auto-loan supply totaled $1.88 billion last week, on three transactions each from independent lenders. The largest, World Omni Financial's $913 million of series 2003-B notes priced through joint lead managers Banc of America Securities and Merrill Lynch & Co. Two-year fixed-rate A3 paper priced to yield 11 basis points over swaps, while 3.25-year A4 notes priced at 10 basis points over swaps, both outside of price guidance.

Household Finance's $750 million non-prime auto loan deal, backed MBIA surety wrap, priced through Banc One Capital Markets and Credit Suisse First Boston jointly. Pricing outside of World Omni, Household's two-year A3 class priced to yield 20 basis points over swaps, with its 3.23-year A4 class pricing at 23 basis points, also over swaps.

Franklin Auto, with $225 million of fixed-rate notes, also wrapped by MBIA, had mixed results versus Household, pricing at 15 basis points over swaps for two-year and 25 basis points over swaps for 3.3-year notes. Citigroup acted as sole manager on the transaction.

Student loan consolidation player Collegiate Funding Services brought just its second term offering ever, with a $1.03 billion 2003-2 transaction via BofA and JPMorgan Securities. Split roughly in half between term and auction-rate securities, CFS priced its three-year seniors at 10 basis points over and its seven-year triple-As at 26 basis points, each over three-month Libor, respectively.

Also marketing late in the week was the inaugural student loan securitization from the Pennsylvania Higher Education Assistance Agency, a $400 million floater led solely by Citigroup. The series 2003-1 offering, made up primarily of a $200 million A1 Libor floater, was marketing late last week. As of press time, it had yet to see price guidance disseminated.

Home equity and mortgage-related supply came at a rapid pace last week, with large deals hitting the market from Chase Manhattan Bank, CitiFinancial, Lehman Brothers, GMAC-RFC and AmeriQuest Mortgage's Argent shelf. A pair of foreign MBS global offerings priced, including $850 million of U.S. dollar and sterling-denominated classes from RMAC-RFC's RMAC shelf.

In transportation-related assets, Triton Container International announced but had yet to price a $370 million shipping container lease ABS via Wachovia Securities. The $337 million senior A class, backed by a MBIA wrap, was marketing in the 45 basis point area over one-month Libor, with the unwrapped subordinate B class, rated triple-B, seen on the 300 basis point area over one-month Libor.

G.E. Capital introduced a $415 million corporate aircraft lease ABS via Citigroup and Societe Generale in the private Rule 144A market, for pricing either this or next week. The inaugural corporate lease securitization from G.E. Capital, scheduled to roadshow this week, consists primarily (85%) of jet aircraft leases.

As was expected at the tail-end of this year, time-share ABS supply has picked up, as Cendant Corp.'s Sierra shelf completed its second offering of the year, a $375 million series 2003-2 deal via CSFB. Amid strong demand, Cendant increased the transaction's size from the initial $300 million, splitting the senior tranche into $179 million two-year fixed-rate and $75 million two-year floating-rate classes. The fixed-rate A1 class priced two yield 90 basis points over swaps, with the floater coming in at 45 basis points over one-month Libor.

Cendant's Sierra comes on the heels of the previous week's $170 million pricing from Starwood Vacation Ownership via Banc One Capital Markets. The spate of time-share supply was predicted in Fitch Ratings' third-quarter roundup (see ASR 11/03/03).

Additionally, Swiss Re vehicle Vita Capital Ltd. was in the beginning stages of a $400 million life-insurance policy ABS. At a time when Clark Consulting's CBC shelf has shown that the insurance sector is not a slam-dunk, sources do not expect Vita to price in the coming weeks, but hope it can wrap up before year-end. Clark's $50 million offering, meanwhile, is still shopping its triple-B rated subordinated class.

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