Mortgage-related ABS continued to dominate supply in the second quarter, accounting for more than $85 billion of the record $144 billion of total ABS in the April through June period, according to numbers from Thomson Financial.

Click to view the ASR 2Q03 New Issues Guide.

The real estate sector nearly doubled the $45 billion sold for same period last year, for a 59% market share, up from 30% during 2Q02. Much of this is attributable to the refinancing wave, which continued unabated and furthered by the principal finance bid, which continues to fuel the whole loan market.

The auto loan and credit card sectors, however, saw declines both in issuance and market share, each contributing $18 billion of new issue supply during the quarter. Over the same period last year, auto loan collateral accounted for $20 billion and credit card receivables accounted for $24 billion. As for market share, the two sectors measured in at 12.8%, down from 22.3% for credit cards and 18.7% for auto loans, in the 2Q02, respectively.

Manufactured housing ABS also saw a decline in issuance, with its largest issuer, Conseco Finance, having worked its way out of Chapter 11 bankruptcy. The MH sector saw just one transaction during 2Q03, a principal finance shelf offering from Deutsche Bank's ACE Securities.

While student loan ABS — also fueled by a refinancing wave — saw a $2 billion increase in quarter-over-quarter volume, its percentage of the market as a whole remained steady at 6.8%. Second quarter student loan issuers priced $9.8 billion, up from $7.6 billion the year prior. 

Equipment lease ABS doubled its count in the quarter, with supply totaling $4.5 billion, versus the $2.3 billion sold over the same period last year. With numerous 2000 vintage deals coming due in the quarter, dealer floorplan ABS priced $1.9 billion of supply, about even with 2Q02 supply. 

Despite pricing just one auto loan ABS in the quarter, General Motors Acceptance Corp. was the leading issuer in the quarter, pricing over $12 billion — of which just $3 billion was in the auto sector. Most of GMAC’s market share comes from its Residential Funding Corp. mortgage unit, which has consistently been one of the market’s most prolific issuers. 

JPMorgan Chase was the second-leading issuer, contributing $6.8 billion in auto, credit card and home equity supply. Rounding out the top five issuers, Countrywide Home Loans, in home equity, and Sallie Mae, in student loans, each brought $6.1 billion of supply to the market.

Lehman Brothers was the leading underwriter for the quarter, placing roughly $15.2 billion of ABS with investors. First-half leader Citigroup Capital Markets sold $12.9 billion in the second quarter, good for second place in quarterly standings, just $300 million over JPMorgan Securities. For the year, however, Citigroup still rides a substantial lead, ending the first half at $34 billion, compared with JPMorgan at $25.4 billion. Credit Suisse First Boston came in fourth for the second quarter at $11.7 billion.

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