New-issue supply slowed to roughly $6 billion ahead of the Thanksgiving holiday, as offerings from the previous week exited the pipeline and only a few issuers tapped the market prior to Wednesday. The most visible names to price last week were Big-Three captive auto lender Daimler-Chrysler N.A. Holdings and MBNA America Bank, which bought its 12th triple-A credit card ABS of the year.
DaimlerChrysler offered $2 billion in supply via Deutsche Bank Securities, JPMorgan Securities and Morgan Stanley, just its second deal of the year. Daimler's one-year A2 class priced to yield six basis points over EDSF, one point inside of guidance, but the 1.9-year A3 class priced at eight over EDSF, versus talk in the seven basis point area. Three-year A4 paper priced to yield seven basis points over swaps, in line with expectations.
MBNA announced and wrapped up a $500 million senior floater early in the week via Banc of America Securities and Barclays Capital jointly. The triple-A rated five-year class priced with an 11 basis point coupon over one-month Libor.
In mortgage-related sectors, AmeriQuest Mortgage's Argent Securities and Delta Funding's Renaissance Mortgage Acceptance each completed offerings that began marketing the previous week. Impac Mortgage quickly sold a $1 billion floating-rate home equity deal and CSFB's ABSHE shelf quickly tapped the market for
$333 million.
Argent, with its ninth offering from the new shelf, sold $1.33 billion of floating-rate supply via Morgan Stanley and UBS. More than half of the deal, $748 million, came in the form of a single, pre-sold tranche, for which no information was made available.
The 2.7-year A3 class, meanwhile, priced at 37 basis points over one-month Libor.
Renaissance Mortgage, sold $457 million of home equity ABS backed by Delta Funding originations, with Ocwen Financial as servicer. Renaissance's senior A1 floater, with a 2.98-year average life, priced at 52 basis points over Libor, compared to guidance in the 50 basis point area.
An Australian MBS emerged late in the week from Liberty Funding Property Trust, which is making its U.S. debut with a $500 million single-tranche offering via CSFB. The 1.43-year triple-A class was being marketed at 40 to 45 basis points over three-month Libor and was seen pricing this week.
Also with its first term ABS, Carlisle Leasing International's CLI Funding introduced a $300 million refrigeration container lease ABS through lead manager SG Cowan. CLI's inaugural deal consists of a $100 million term offering and $200 million revolving facility. Backed by a full Ambac wrap, timing is uncertain for CLI, although the underwriter hopes to close by Dec. 9. Despite Carlisle parent Marubeni Corp.'s single-B rating, CLI's lease contract utilization rate tops 90%, notes Moody's Investors Service, with 86% to 92% of the leases being described as "long-term by Moody's.
The Pennsylvania Higher Education Assistance Authority completed the $400 million offering it was marketing via sole manager Citigroup Global Markets. The only term class in the transaction, $200 million of 1.75-year A1 notes, priced at six basis points over three-month Libor.
As trading ground to a halt last week, G.E Capital Corp. was still marketing its $415 million corporate aircraft lease ABS, while Golden Funding was shopping a $300 million franchise ABS via Citigroup and JPMorgan.
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