The U.S. ABS primary market generated a whopping $26 billion as issuers and banks rushed to get deals done before market participants head to Las Vegas for the American Securitization Forum's 2006 ABS conference this week.
The following were some of the major deals to make it into the market last week.
Long Beach Mortgage was in the market with a $2.5 billion home equity deal that had yet to price as of press time. The first tranche of the deal was reserved, and the one-year tranche was being talked in the seven basis points to eight basis points over one-month Libor range, while the two-year tranche was being talked in the 14 basis points to 15 basis points over one-month Libor range.
Argent Securities Inc. had a $2.2 billion home equity securitization in the market, which had yet to price as of press time. The deal had a one-year tranche talked at eight basis points over one-month Libor, a second one-year tranche talked in the 15 basis points to 16 basis points over one-month Libor range and a two-year tranche talked in the 19 basis points to 20 basis points over one-month Libor range.
Not to be left out of the home equity party, Lehman Brothers had a $1.5 billion offering out of its SAIL trust that also did not make it to pricing by press time. The under one-year tranche of the deal was being talked at eight basis points over one-month Libor, while the two-year tranche was being talked in the 14 basis points to 15 basis points over one-month Libor range.
The home equity market also saw Merrill Lynch issue a $1.4 billion deal out of its SURF trust, with a one-year tranche talked at eight basis points over one-month Libor, a two-year tranche talked at 13 basis points to 14 basis points over one-month Libor and a three-year tranche talked at 20 basis points over one-month Libor.
Relative ABS newcomer Carrington Mortgage, only on the scene since mid-2004, brought a hefty $1.3 billion deal to market, but did not price it by press time. The deal was led by Citigroup and had a one-year tranche talked at eight basis points over one-month Libor and a two-year tranche talked at 15 basis points to 16 basis points over one-month Libor.
Morgan Stanley had a $1.2 billion home equity deal on the block. The deal priced at eight basis points over one-month Libor for the sub-one-year tranche, 14 basis points over one-month Libor for the two-year tranche, 19 basis points over one-month Libor for the 3.5-year tranche and 30 basis points over one-month Libor for the 6.8-year tranche.
Nissan Motor Co. Ltd. priced one of the largest auto deals on the week, with a $1.1 billion offering led by Citigroup. The deal priced a money-market tranche at two basis points under one-month Libor, a one-year tranche at two basis points under EDSF, a two-year tranche at three basis points under swaps and a 3.5-year tranche at one basis point over swaps.
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