The week back from the Thanksgiving holiday proved to be a relatively slow one in the U.S. ABS primary market, leaving investors with just over $6.1 billion in new issues to digest as of last Thursday evening.
The auto sector accounted for the bulk of activity with more than $3.2 billion priced for the week. General Motors Acceptance Corp. was in the market with a $2.57 billion transaction backed by prime retail loans via Credit Suisse First Boston, Lehman Brothers and SG Corporate & Investment Banking. Notably, Dominion Bonds Ratings Service made its first appearance on a U.S. auto deal (see related story on opposite page). The fixed rate transaction came largely in line with expectations, with the 2.75-year triple-A rated A3 notes pricing on target at three basis points over Swaps. The triple-A notes with a two-year average life were slightly inside at one point over Swaps versus guidance at two points over swaps.