For the second consecutive week the U.S. ABS primary market was sluggish and transactions marketed throughout the week looked as though they may be held over to this week. Total supply offered was $12.2 billion, but just $6.9 billion had priced as of late Thursday. While the supply overhang was concentrated in the mortgage ABS sector, transactions in consumer assets went quickly, pricing within one day of being announced.
The Metris Companies' highly anticipated return to the ABS market was a blowout, as its $200 million series 2004-1 deal via Banc of America Securities and Deutsche Bank Securities was more than 4x oversubscribed, sources said. The $200 million MBIA wrapped three-year senior class priced at 28 basis points over one-month Libor. The deal went out to the market in the 30 basis point area over Libor.