Only in the hottest ABS market in recent history would $9 billion be considered a slow week, but compared to the rest of the month, it seems as if the market slowed a bit last week. The Federal Open Market Committee meeting resulted in another quarter-point increase in the target federal funds rate to 3.25% and, while expected, when combined with an upcoming holiday weekend, it may have been enough to keep issuers out of the market.
The credit card sector saw three deals price, the largest from MBNA America Bank with an $800 million five-year deal in the market. That deal priced at four basis points over one month Libor, tight to guidance set at five basis points over one-month Libor. ABN AMRO and Deutsche Bank Securities led the deal, which priced the day before Bank of America announced it would acquire MBNA.
Capital One Financial was in the market with a $500 million four-year deal led by Banc of America Securities and Morgan Stanley. The deal priced at 2.5 basis points over one-month Libor, smack in the middle of guidance of two-to-three basis points over. Advanta Corp. also priced a $225 million five-year deal via Deutsche Bank and Merrill Lynch pricing at 13 basis points over one-month Libor, at the tight end of indicative levels set in the 13 to 14 basis point range over Libor.
The auto sector witnessed the debut of a new whole loan trust from BofA with a deal from its Bank of America Securities Auto Trust. The deal, backed by loans purchased from Wells Fargo Bank, N.A., totaled $890 million in size. The one-year tranche of the deal priced at two basis points over EDSF while the two-year tranche priced at just one basis point over swaps, two basis points inside of guidance set in the three basis point area over swaps. The 2.83-year tranche priced on top of guidance at six basis points over swaps.
Hyundai Motor Credit was in the market with its first deal of the year, a $774 million series 2005-A deal led by Deutsche Bank. The one-year tranche of the deal priced at four basis points over EDSF while the two-year tranche priced at four basis points over swaps, two basis points inside guidance at six basis points over. The 3.35-year tranche priced two basis points wide of guidance to finish at 17 basis points over swaps.
GE Capital Corp. priced a $713 million deal backed by SME loans led by Goldman Sachs and Wachovia Securities. The 2.5-year tranche of the deal priced at seven basis points over one-month Libor, up to two basis points tight versus guidance. The five-year senior tranche priced at 25 basis points over swaps, flat to guidance, while the 8.4-year tranche priced three basis points wide of guidance to clear at 25 basis points over one-month Libor.
Country Place priced a $118 million manufactured housing deal led by Citigroup Global Markets. It is only the second manufactured housing deal of the year and the first term securitization from Country Place as an issuer. The one-year senior class price at 20 basis points over EDSF, with the three-year class pricing at 35 basis points over swaps. The six-year senior notes priced at 60 basis points over swaps and the ten-year came in at 85 basis points over swaps.
In the real estate ABS sector, a pair of $1 billion deals priced from People's Choice Home Loan, Inc. and Green Tree Finance. Led by Lehman Brothers the People's Choice deal saw its one-year tranche price at 13 basis points over one-month Libor, two to three basis points wide of guidance. Most of the deal priced wide or on the wide rim of guidance. The Green Tree deal, from the brand new Lake Country shelf, was led by RBS Greenwich Capital. The deal priced in-line with guidance all the way down the capital structure, with only the M6 tranche pricing wide of guidance at 155 basis points over one-month Libor, outside of guidance set in the 140 to 145 basis point range.
Countrywide Home Loans, Inc. also priced an $800 million subprime MBS deal, which saw its 2.5-year tranche price at 25 basis points over one-month Libor, one point wide of guidance.
Credit Suisse First Boston priced a $410 million home equity deal that priced well wide of guidance across the capital structure. The 1.2-year tranche priced 24 basis points over one-month Libor, five basis points wide of guidance at 19 basis points over. The four-year tranche priced four basis points wide of guidance to finish at 54 basis points over one-month Libor.
First Citizens Bank priced a $248.4 million deal backed by HELOCs. The 2.5-year tranche of the deal priced at 21 basis points over one-month Libor and was led by SunTrust Robinson Humphrey. Lehman priced a $230 million home equity deal that priced on the wide rim of guidance.
UBS priced a $112.7 million deal backed by program exceptions. The 2.28-year tranche of the deal priced at 39 basis points over one-month Libor, while the 4.67-year tranche priced at 60 basis points over.
Lehman also had a $1 billion deal backed by HELOC collateral, which had yet to price as of press time. The three-year deal was being talked at 33 basis points over one-month Libor and 38 basis points over one-month Libor.
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