While the European non-CDO market appears to slowing in August, the U.S. ABS primary market is seeing plenty of activity, pricing $11.7 billion in new-issue supply. For once this year, the high-quality auto and credit card names left little room for home equity issuers to tap investor demand, which by week's end was strong for the pair of mortgage-related offerings in the market.

With just its third auto ABS of the year, General Motors Acceptance Corp. completed its $3 billion fixed- and floating-rate deal early in the week. Of significance, HSBC joined Credit Suisse First Boston and JPMorgan Securities as joint leads, marking HSBC's first lead mandate of the year.

GMAC offered investors fixed- and floating-rate classes, with demand skewed more towards the floaters. Floating-rate 1.35-year A1B notes priced at five basis points over one-month Libor and two-year A2B notes priced at six basis points over. By contrast, 1.35-year fixed-rate A1As cleared to yield eight basis points over EDSF and two-year A2A notes priced at 11 basis points over swaps. All classes of the deal came within initial price guidance.

On the non-prime front, WFS Financial was in last week with its third offering of the year, a $1.65 billion deal via CSFB. While WFS only offered floating-rate paper for the two-year tenor, that tranche saw heavy demand as well, sources noted. The deal benefited from a full FSA wrap.

WFS priced its one-year fixed-rate notes at 12 basis points over EDSF and its two-year fixed-rate notes at 21 basis points over swaps, with the two-year A3B floaters pricing at 13 basis points over one-month Libor. Three-year A4 notes priced at 30 basis points over swaps, out from guidance in the mid 20 basis point area over.

The second FSA-wrapped auto loan offering last week came from Bay View Acceptance Corp., which placed $193 million of 2003-LJ1 notes via Barclays Capital and UBS Warburg jointly. Leveraging the transaction to its fullest, Bay View priced a $149 million I-O strip in conjunction with the deal. Pricing within hours of being announced, Bay View offered investors an eight to nine basis point yield pick up versus one- and two-year WFS paper. One-year Bay View notes priced at 18 basis points over EDSF, with the two-year A3s pricing at 30 basis points over swaps.

While not technically auto loans, Harley-Davidson's $475 million motorcycle loan offering via Citigroup, priced on top of top-tier auto names. One-year HD 2003-3 A1 notes priced at six basis points over EDSF, moving in one basis point from price talk, while the 2.87-year A2 notes priced at eight basis points over swaps. Down in credit, Harley's 1.71-year single-As priced at 35 basis points over EDSF, equating to a 2.30% all-in yield.

Also, Cendant's Chesapeake Funding priced its $500 million rental fleet lease ABS via JPMorgan Securities and Wachovia Securities. The pre-enhanced senior notes are supported by the $377 million Terrapin Funding subordinates that priced via Lehman Brothers in mid-July.

A pair of infrequent credit card issuers, Advanta Corp. and World Financial Network were seen last week. Advanta, selling $300 million of bonds backed by its business credit card program, was a reverse-inquiry driven offering via Barclays, which was increased from the initial $265 million. The largest tranche, $210 million of two-year floaters that priced at 40 basis points over Fed Funds, is where the reverse inquiry interest originated. The level equates to 23 basis points over one-month Libor, assuming a 17 basis point Fed Funds mid-market swap, sources said.

WFN sold $460 million of notes, as part of a transaction that totaled $600 million, via Banc One Capital Markets and Wachovia. On June 17, WFN placed $100 million of triple-A senior and $40 million triple-B subs privately, as part of this transaction.

Capital One Financial once again tapped the market with a credit card offering, this time with a $500 million five-year triple-A floater, which priced via Banc of America Securities at 25 basis points over one-month Libor. Late in the week, Citibank also announced a triple-A five-year offering, although Citi's fixed-rate deal was expected to price Friday at seven basis points over swaps.

Two home equity offerings emerged from shelves belonging to BofA and Goldman Sachs, backed by acquired collateral. BofA's ABFC 2003-OPT1, a Option One Mortgage deal, was oversold across most classes and set to price Friday. Goldman's GSAMP Trust 2003-HE2 was marketing and seen pricing either last Friday or early this week.

Aviation Capital, marketing its super-enhanced aircraft lease ABS via Wachovia over the past two weeks, priced its MBIA-wrapped senior classes, pricing 4.9-year G1 notes at 70 basis points over one-month Libor and 6.9-year G2s at 80 basis points over Libor. As of press time the single-A rated B1 class had yet to price.


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