Despite an effective boycott of the name from European investors, AIG Credit came back into the asset-backed market last week with a revamped version of the insurance premium loan securitization that had been shelved earlier this month (See ASR 7/25). While the tenor was shortened, spreads remained the same as for the five-year, offering investors a pick up of five basis points, sources said.
In order to complete the deal, lead manager Salomon Smith Barney shortened the average life of the offering to roughly three years from the initial five-year structure to target U.S. investors. The domestic buyers primarily securities lenders - did not hold a grudge against parent company American International Group Inc., as the Europeans did. Also, the size of the offering was reduced slightly to $466 million from the initial $518.6 million.