The New York Yankees were not the only ones on a roll last week. The U.S. ABS primary market also had a stellar week, pricing nearly $20 billion in new issue supply. As the flailing Bombers rebounded to a five-game winning streak, the primary market bounced back from its own mini-slump. The week before last saw only $2 billion in issuance. Was the Phoenix-esque rise of America's team somehow linked to the revitalization of the ABS primary market? Probably not, but here is what hit the primary last week...

The real estate sector once again dominated the issuance calendar with over $11 billion priced. Two auto issuers also braved the stormy automobile sector to get deals done and a student loan deal from Sallie Mae and subordinated credit card deals from Capital One Financial and Chase Manhattan Bank snuck into the picture. Adding a little flavor to the mix were an equipment lease deal, a mutual fund fee securitization and a tobacco settlement deal from the Commonwealth of Virginia.

RBS Greenwich Capital brought a $4.25 billion home equity deal with the one-year tranche priced at 10 basis points over one-month Libor and the six year tranche priced at 37 basis points over one-month Libor. Fannie Mae also priced a whopper of a home equity deal, a $3 billion, three-tranche floater. The one-year tranche priced at one basis point over Libor, the three-year priced at 12 basis points over one-month Libor and the six-year at 21 basis points over one-month Libor.

AmeriQuest Mortgage tapped the market with a $2 billion Park Place deal led by Barclays Capital and Credit Suisse First Boston. The two-year tranche of the deal priced at 16 basis points over one-month Libor and the three-year tranche priced at 22 basis points over one-month Libor, both on top of guidance and industry average spreads. Morgan Stanley was also in the market with a $1.2 billion home equity floater that had yet to price as of press time. The one-year tranche was being talked in the nine basis point area over one-month Libor and the three-year tranche was being talked in the 22 basis point are over one-month Libor.

Morgan Stanley priced a second $890 million home equity deal that priced at nine basis points over one-month Libor for the one-year tranche, and 22 basis points over one-month Libor for the three-year tranche. To round out the real estate ABS sector, Merrill Lynch priced an $839 million SURF deal that priced at 10 basis points over one-month Libor for the one-year tranche. The three-year tranche priced on top of the Morgan Stanley deals.

Sallie Mae priced a $2.5 billion student loan deal led by Deutsche Bank Securities and Merrill. The three-year tranche priced one basis point through guidance to finish at one basis point over three-month Libor. The seven-year tranche priced eight basis points over three-month Libor. Unusually, there was no one year cashflow.

DaimlerChrysler N.A. Holdings and Wachovia Bank braved the choppy seas of the automobile sector in a week that saw Ford Motor Co. and Ford Motor Credit downgraded one notch each by Moody's Investors Service. The $2 billion DiamlerChrysler deal was led by Banc of America Securities, Deutsche Bank and JPMorgan Securities. The deal priced in line with the wider spreads in the sector at four basis points over EDSF for the one-year tranche, four basis points over swaps for the two-year tranche and six basis points over swaps for the three-year tranche - all on top of guidance.

Wachovia wrapped up its $1 billion auto deal Thursday at two basis points over EDSF for the one-year tranche and two basis points over swaps for the two-year tranche and five basis points over swaps for the three-year tranche.

A slim $150 million credit card deal from Capital One Financial also shimmied its way into the market last week via CSFB and Goldman Sachs. The deal is a single-A rated, three-year credit card floater that priced at 15 basis points over Libor, versus talk in the 15 to 16 basis point range over. The mini-deal does little to aid the flagging sector as it once again begins to lag farther behind last year's totals.

A late addition to the calendar last week, Chase's $150 million seven-year triple-B rated CHAIT offering priced at 44 basis points over one-month Libor.

In some of the more off-the-run sectors, Textainer Marine Containers brought a $580 million, five-year equipment lease deal talked at 25 basis points over one-month Libor and led by Wachovia, which was seen pricing early this week. Citibank, N.A. brought a $157 deal backed by mutual fund manager 12(b)1 fees. The single-tranche, FGIC-wrapped deal was being shopped in the 22 basis point area over one-month Libor. Finally, the Commonwealth of Virginia began marketing a $428 million BBB' tobacco settlement deal led by Bear Stearns.

(c) 2005 Asset Securitization Report and SourceMedia, Inc. All Rights Reserved.

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