In the short week following Memorial Day, the ABS market eased into the summer months at a languid pace with $10.19 billion in new issuance as of press time Thursday night. Real estate ABS once again reigned supreme, accounting for about half of the total volume.
Long Beach Mortgage tapped the market with an impressive $2 billion offering via RBS Greenwich Capital and WaMu Capital. The five-year split-rated M6 notes priced on the tight end of guidance at 142.5 basis points over one-month Libor, relative to talk in the 140 to 145 point range. Meanwhile, the triple-B rated, five-year M8 notes came in even tighter at 215 basis points over one-month Libor, compared to guidance at 225 points. Also pricing was an $899.25 million offering from Centex Corp. led by Bank of America Securities. The five-year triple-A rated AF5 notes, which had initially been pegged at 95 to 100 points over swaps, priced wide at 110 basis points over swaps.