As expected, TXU Electric's stranded cost ABS was introduced to the market last week, and on track for a Friday pricing following a launch Thursday afternoon. What was not expected was the seemingly vanilla appearance of the transaction when all was said and done.

Despite launching at the wide end, or wider than guidance, TXU Electric Delivery Transition Bond series 2004-1 did, however, accomplish its stated goal of re-pricing the sector, bringing it within comparable credit card ABS on the long end of the curve. "The state of Texas is trying to give the greatest value to the investor for their dollars and the greatest liquidity possible to lower ratepayer costs," said TXU's advisor Saber Partners Chief Executive Officer Joe Fichera.

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