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.