The U.S. ABS market was reasonably active during the short week preceding the Thanksgiving holiday. Close to $3.5 billion was priced during the two days leading up to the mass exodus to the suburbs on Wednesday. Sources expect another two weeks of solid issuance before the December lull sets in.
The real estate sector accounted for the bulk of the activity with roughly $2.8 billion priced. First Franklin Mortgage tapped the market for $810.9 million in traditional home equity ABS via RBS Greenwich Capital. The offering priced in line with guidance throughout the capital structure. The 2.55-year triple-A rated notes were on target at 35 basis points over one-month Libor. Spreads stayed the course down in credit, with the double-A minus mezzanine notes with a 4.53-year average life clearing 80 basis points over one-month Libor. The 4.5-year triple-B plus subordinates came in line with expectations at 250 points over Libor.