The primary U.S. ABS market made a return to loftier volume levels last week to price close to $9.5 billion as of Thursday's market close. The real estate sector made up the bulk of total volume with $6.5 billion in new issues.

Delta Funding Corp. tapped the market for $728 million via Citigroup Global Markets and Friedman Billings Ramsey. The three-year triple-A rated floaters priced wider than expected at 22 basis points over one-month Libor versus guidance in the 20 basis point area over one-month Libor. The three-year fixed-rate notes were similarly outside of expectations, also pricing at 22 points over swaps relative to talk in the 20 basis point area over swaps. Spreads tightened down in credit, with the 5.48-year mezzanine notes clearing at 95 basis points over swaps, versus guidance at set in the 100 basis point area over swaps. The triple-B rated notes, with a 5.47-year average life, came in to price at 150 basis points over swaps versus guidance in the 155 basis point area over swaps.

Barclays Capital priced $1.28 billion off of its SABR dealer shelf. The deal priced tight across much of the credit spectrum. The 5.36-year double-A plus rated notes cleared at 41 basis points over one-month Libor as opposed to expectations in the 43 to 45 basis point range. Further down the capital structure, the single-A minus notes, with 5.3-year average life, priced at 73 basis points over Libor relative to talk of 75 to 77 basis points over Libor. The 5.29-year subordinated notes also came inside of guidance at 193 points over Libor versus talk in the 195 basis point area over one-month Libor.

Bank of America N.A. was in the market with a $1.74 billion offering off of its dealer vehicle, Asset Backed Funding Certificates Trust. The deal also priced tight, with the 6.18-year senior notes clearing at 32 basis points over one-month Libor versus talk in the 33 to 34 basis point over Libor range. Down in credit, the 4.38-year subordinates hit at 195 basis points over Libor relative to expectations at in the 200 basis point area over Libor.

GMAC-RFC. cane to market with $969.79 million backed by subprime MBS, with its securities unit RFC Securities acting as joint lead manager with Banc of America Securities on the transaction. The three-year senior class priced at 19 basis points over one-month Libor, relative to talk set at 20 to 21 basis points over Libor. Down in credit, the 4.32-year M6 class widened to 215 basis points over Libor versus talk in the 205 to 210 basis points over Libor area.

IndyMac Mortgage tapped the market for $969.79 million via Morgan Stanley and UBS. The 6.46-year triple-A rated notes priced at 34 basis points over one-month Libor versus guidance at 35 basis points over Libor. The 4.52-year and 4.50-year mezzanine notes were on target at 72 and 75 basis points over one-month Libor, respectively. Spreads gapped out further down the capital structure to price the 4.46-year split-rated M9 class at 220 basis points over one-month Libor, versus guidance set in the 210 basis point area over Libor.

Centex Corp. was in the market with a $1 billion offering via RBS Greenwich Capital (see related story p.1). The triple-A rated 2.2-year notes cleared at 15 basis points over swaps versus talk in the 16 basis point area over swaps. The longer-dated seniors, with a three-year average life, also priced tight at 20 basis points over swaps relative to guidance in the 22 to 23 basis point range over swaps. Spreads held firm through out the capital structure, with the 4.59-year single-A rated floaters clearing at 68 basis points over one-month Libor relative to guidance set at 70 basis points over Libor. The 4.52-year subordinates priced at 135 points over Libor, versus guidance in the 130 to 135 basis point range over Libor.

The student loan sector saw two deals price for the week for a total of $2 billion. Goal Financial LLC tapped the market with the $1 billion Higher Education Funding 2005-1 offering backed by FFELP loans. The 11.9-year triple-A rated notes priced at 14 basis points over three-month Libor versus talk in the 15 basis point area over three-month Libor.

Brazos Higher Education Authority Inc. was also in the market with $1 billion deal backed by FFELP loans via Banc of America and Citigroup. The pricing mirrored the levels seen on the Goal Financial offering, with the 11.9-year senior notes clearing at 14 basis points over three-month Libor relative to guidance at 15 over three-month Libor.

The credit card sector priced a single $875 million delinked offering from Citibank N.A. The 10-year triple-A rated A2 class cleared at eight basis points over swaps, versus talk in the eight to nine basis points area, to yield 4.866%.

(c) 2005 Asset Securitization Report and SourceMedia, Inc. All Rights Reserved.

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