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.

At press time, nearly $2 billion in real estate ABS had yet to price. Credit Suisse First Boston was shopping a $309.28 million offering from its ABSHE home equity shelf, while Merrill Lynch made the rounds with a $574.92 million transaction through its SURF issuance vehicle (short for Specialty Underwriting & Residential Finance).

Also still on the block were a $158.1 million offering from Ameriquest Mortgage and a $614 million from Equifirst Mortgage, both via RBS Greenwich. Morgan Stanley was making the rounds with a $219.97 senior/subordinated scratch-and-dent offering.

The auto sector was slow for the week with a single $553.49 million deal from AmeriCredit Financial Corp. via Barclays Capital and CSFB. The A1 money market tranche priced on target at one basis point under three-month Libor. The 3.62-year triple-B rated D notes priced inside of talk at 125 basis points over swaps versus guidance of 130 basis points.

Credit cards fared slightly better for the week, with two deals for $600 million in new issues. Both single-tranche triple-A rated offerings came from Capital One Financial and were led by Deutsche Bank Securities and Barclays Capital. The $200 million 6.39-year notes priced within guidance at 15 basis points over one-month Libor. The $400 9.93-year notes priced in line at 22 basis points over one-month Libor.

The student loan sector came in ahead of both credit and auto to price $3.29 billion. First Marblehead Corp. hit the market with $778.5 million worth of FFELP-backed notes off its Nation Collegiate Master Student Loan Trust via UBS. The triple-A rated 2.4-year A1 notes came in slightly outside of talk at 12 basis points over three-month Libor relative to guidance at 10 to 11 points. Sallie Mae also hit with a $2.51 million offering through CSFB and JPMorgan. The triple-A rated one-year A1 notes were also slightly wide at flat to three-month Libor compared to talk at one under.

Still marketing at press time was a $628 million business loan-backed offering from GE Capital Corp. through Goldman Sachs and Wachovia. Guidance for the 5.88-year triple-A class was at 30 basis points over one-month Libor and was expected to tighten.

Wachovia's first airplane lease-repack deal from its WRAPS shelf, which has been circulating for several weeks, was reportedly pricing either Friday or early this week.

Copyright 2004 Thomson Media Inc. All Rights Reserved.

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