Last week was the busiest for new issuance since the events of Sept. 11, pricing more $9 billion across all collateral sectors as investors gave the thumbs up for second-tier issuers to tap the market. Trepidation from the buyside was seen when it came to the first third-tier offering. Though the Conseco home-equity deal widened spreads significantly, it failed to completely price a deal as of press time.
The most successful deals of the week, from sector benchmarks AmeriCredit and Chase, saw heavy investor demand that led to increases in size and spread tightening. Subprime auto lender AmeriCredit sold $1.8 billion of auto loan paper through Deutsche Banc and JPMorgan jointly that was increased from an initial $1.5 billion. Chase increased its three-year credit card-backed deal to $1.5 billion from $1.19 billion.