Not even the Global ABS Conference' could stop the heady U.S. ABS primary market from pricing and marketing nearly $15 billion in yet another strong spring week ahead of the end of the second quarter. As the conference raged in Barcelona last week, the auto, credit card and real estate sectors all saw healthy amounts of issuance and a student loan deal snuck its way into the market, but had not priced as of press time.
One of the most notable offerings in the market last week was a $1.8 billion whole auto loan securitization from Merrill Lynch's Merrill Auto Trust Securitization, or MATS, trust. The collateral on the deal consisted mostly of prime retail loans from four different originators (see story, page 8). The deal priced a 0.3-year 2a7 money market tranche flat to four-month Libor, a one-year fixed-rate tranche at two basis points over EDSF, a one-year floating-rate tranche at one basis point over one-month Libor and a two-year fixed-rate tranche at four basis points over swaps. All priced on top of guidance.
General Motors Acceptance Corp. was in the market with a $1.48 billion series 2005-A12 wholesale dealer floorplan deal led by ABN AMRO, Credit Suisse First Boston and Deutsche Bank Securities. The senior tranche of the three-year deal priced at 18 basis points over one-month Libor, the B tranche priced at 48 basis points over one-month Libor and the Class C tranche priced at 120 basis points over one-month Libor, all on top of guidance.
Household Finance brought a $1 billion nonprime auto loan deal led by HSBC Securities. The deal priced one basis point under four-month Libor for the money market tranche, five basis points over EDSF for the one-year tranche, 10 basis points over swaps for the two-year tranche and 21 basis points over swaps for the three-year tranche. USAA Federal Savings Bank issued an $837 prime auto loan deal led jointly by Barclays Capital and JPMorgan Securities. The money market tranche of the deal priced three basis points under four-month Libor, the one-year tranche priced three basis points under EDSF, the two-year tranche priced two basis points under swaps and the three-year tranche priced four basis points over swaps.
Navistar Financial also swooped into the market to deposit a $600 million retail truck loan and lease deal, its first, and likely last, for five years. The five-year deal was led by JPMorgan and priced at 27 basis points over one-month Libor for its triple-A seniors, significantly outside guidance in the low 20 basis points area.
The credit card sector saw two deals from Citibank, N.A. One was a seven-year, $250 million deal that priced at six basis points over swaps, on the outer rim of guidance. The other was a $200 million, ten-year deal that priced at nine basis points over swaps, also on the outer edge of guidance.
Countrywide Home Loans had a third deal in three weeks, with a $1.7 billion 2005-6 home equity offering. The 2.5-year, triple-A-rated tranche of the deal priced at 23 basis points over one-month Libor. GMAC Mortgage brought a $1.1 billion of 2005-HE2 HELOC-backed notes led by RBS Greenwich Capital and with a 100% FGIC wrap. The 0.5-year tranche of the deal priced on top of guidance at eight basis points over one-month Libor, while the two-year tranche priced at 45 basis points over swaps, on the outer edge of guidance in the 40 to 45 basis point range. The four-year tranche priced at 66 basis points over swaps, outside of guidance in the 60 to 65 basis point range.
First NLC Financial priced a $547 million home equity deal led by Friedman Billings Ramsey. The one-year tranche of the deal priced at 11 basis points over one-month Libor, one point outside guidance, while the 2.75-year tranche priced at 30 basis points over one month Libor - three basis points wider than guidance.
Irwin Union Bank & Trust priced a $359 million HELOC deal led by Bear Stearns. The one-year tranche priced two to three basis points wider than guidance at 14 basis points over one-month Libor.
There were a host of real estate sector deals poised to price late last week. One was a $1.4 billion ACE Securities home equity deal from Deutsche Bank Securities. The deal was being talked at nine basis points over one-month Libor for the one-year tranche, 23 to 24 basis points over one-month Libor for the three-year tranche, and 35 basis points over one-month Libor for the 6.37-year tranche. GMAC-RFC priced a $592 million subprime MBS deal led by Citigroup Global Markets. The deal was being talked at nine basis points over one-month Libor for the one-year tranche, 14 to 15 basis points over one-month Libor for the two-year tranche and 23 basis points over one-month Libor for the 3.25-year tranche.
Lehman Brothers brought a $526 million second lien MBS deal that was being talked at 20 basis points over one-month Libor for the two-year tranche and 47 basis points over Libor for the 5.43-year M1 tranche. SoundView Mortgage was in the market with a $362 million deal and American Home Mortgage Investment Corp. was marketing a $251 million, 1.53-year FGIC-wrapped HELOC deal led by Lehman Brothers. That deal was being talked in the 18 to 20 basis points over one-month Libor range. Rounding out the real estate sector was a $3 billion deal from Long Beach Mortgage led by RBS Greenwich.
A student loan deal from Brazos Higher Education Authority Inc. led by Citigroup was being marketed last week. The $1.3 billion deal was being talked at two to three basis points over three-month Libor for the three-year tranche and ten basis points over three-month Libor for the seven-year tranche. The deal was backed by Federal Family Home Loan Program collateral.
Citibank was also poised to price a $158 million deal backed by mutual fund Rule 12b-1 fees. The 3.51-year deal was being talked in the 25 basis point area over one-month Libor and has a 100% FGIC wrap.
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