The U.S. ABS primary market snapped to attention last week with close to $11 billion priced as of Thursday's market close. Real estate ABS alone was good for roughly $5 billion of the total, as the auto sector also showed strength.
Morgan Stanley hit with a $1.32 billion home equity deal off of its MSAC dealer shelf. The transaction priced largely in line with expectations, although there was some widening down in credit. The 5.22-year triple-B rated notes came in at 195 basis points over one-month Libor versus guidance of 190 points over Libor.