On a macroeconomic level, the Federal Reserve was expected to follow its 75 basis point reduction with another when it met last Wednesday. For the asset securitization market, however, it would take more than a rate reduction for investors and issuers to become comfortable enough to kick start the sector.
Consumer assets continue to hold up the securitization market, kicking off last week with one transaction each from the credit card and auto asset classes. The Bank of America Credit Card Trust Class A, 2008-1, priced a $2 billion, highly rated credit card transaction at 58 basis points over its triple-A-rated notes. Banc of America Securities was lead manager on that transaction, while Deutsche Bank Securities, JPMorgan Securities and Merrill Lynch were co-managers.