Big regional player PNC Bank will be weighing in with "several" new issues for the remainder of the year, including both public and private deals.
"All our transactors are in for a fairly busy period," said a source close to the bank's securities operations. "Everything from privates to 144As to public deals." Industry insiders have placed PNC's total issuance in the $2 billion area for the rest of 1999.
He said he expects the flow to turn up in August and September, and unlike some other market players, the source said PNC is not as worried about the fourth quarter's Y2K jitters as the market seems to think it should be.
"People are trying to avoid the fourth quarter," he said. "I think it's overblown. I think most large issuers are in pretty good shape. I think there will be business to be done in the fourth quarter."
While the firm expects to keep stuffing its ABCP conduit, Market Street Funding, there will also be some new term issuance. Pittsburgh-based PNC does a lot of automotive-related deals, from leases to subprime loans to truck issues, but the bank expects its near-future focus to be on student loans.
"We're working with three or four of the top lenders there," said the source. Others in the industry have them coming out with a $500 million student loan issue, a fairly large size for that asset class.
Look for the bank to be named as co-manager on another student loan deal by mid-July, said one source.
PNC's last deal of note involved the purchase of $150 million in loans from NationsBank lent to employees of United Parcel Service. Those loans were sent to market via the Market Street conduit. - TC