After setting a vigorous pace to close out the second quarter, the U.S. ABS primary market slowed considerably last week, pricing just under $5.3 billion. Slowed by issuers' desire to complete quarter-end funding before the Fed's 25 basis point rate hike last week, issuance slowed to $5 billion total volume, of which real estate ABS accounted for about $4.2 billion. The Independence Day holiday likely did not help the cause.
Capital One Financial was the sole non-mortgage issuer to come last week, with a $750 million credit card ABS via Banc of America Securities and Lehman Brothers. The three-year, triple-A, series 2004-A6 deal priced at four basis points over three-month Libor, in line with guidance.