The U.S. ABS primary market returned refreshed from the holiday break during the latter half of last week to price upwards of $13 billion as of Thursday evening. Both the home equity and auto sectors started the New Year off strong.
The auto sector outpaced home equities for the week, churning out roughly $8 billion in new paper. Diminished supply and strong technicals combined to produce record tights in the sector, said John Cho, vice president at JPMorgan Securities. Both the one and two year classes of DaimlerChrysler N.A. Holding's $2 billion offering priced within guidance at one basis point under EDSF and swaps, respectively. Citigroup Global Markets and Barclays Capital worked with JPMorgan as joint leads on the DaimlerChrysler deal. The tightest print in the auto sector prior to this transaction had been flat to the benchmark rate, Cho added.