The U.S. ABS primary market swelled to roughly $20 billion with only four full days of issuance due to the Veteran's Day holiday.
The biggest student deal of the week to make it to pricing was a $1.9 billion student loan deal from Nelnet Inc. led by Citigroup Global Markets, JPMorgan Securities and Morgan Stanley. The deal priced in-line or tight to guidance all the way down the capital structure, with the three-year tranche pricing flat to three-month Libor.
The only other student loan deal to price was a $986 million offering from KeyCorp, backed by both FFELP and private collateral, led by Deutsche Bank Securities and KeyBanc Capital Markets. The two-year tranche of the deal priced at one basis point over three-month Libor, one basis point tight to guidance.
The top of the auto ABS heap last week belonged to AmeriCredit Corp. with its $1.4 billion deal led by Barclays Capital, Credit Suisse First Boston and UBS. The deal priced its money-market tranche flat to Libor and its one-year tranche priced at three basis points over EDSF, one basis point tight to guidance.
Harley-Davidson Inc. was also in the market with a $325 million securitization of motorcycle loans via Wachovia Securities. The one-year tranche of the deal priced at three basis points over EDSF and the three-year tranche of the deal priced at one basis point over swaps.
Volkswagen Credit Corp. also tapped the auto ABS market in a big way with a $1.2 billion transaction led by ABN AMRO and JPMorgan. The money-market tranche of the deal priced at two basis points under five-month Libor, on the tight rim of guidance.
Also in the market was a $1.2 billion home equity deal from Accredited Home Lenders offered by Lehman Brothers. The deal priced in-line or tight to guidance all the way down the capital structure. Goldman Sachs was in the home equity market with a $861 million market transaction, and GMAC-RFC brought a $637 million deal to market led by JPMorgan.
Meritage Mortgage priced a $543 million subprime MBS transaction with RBS Greenwich Capital as the sole lead. Bear Stearns brought a $124 million home equity offering to market as well, which priced in-line or tight to guidance.
MBNA America Bank tapped the market with the largest credit card deal of the week, a $1 billion, delinked deal led Banc of America and Morgan Stanley. The triple-A rated five-year deal priced flat to guidance at four basis points over one-month Libor. Additionally, Citibank N.A. had a $175 million triple-B rated credit card offing that priced at 33 basis points over one-month Libor.
AmeriQuest Mortgage was shopping a $2.57 billion home equity deal led by Citigroup and Merrill Lynch, and Friedman Billings Ramsey was circulating a $988 million home equity deal as well, with Opteum Mortgage shopping a $978 million offering. Lehman Brothers had a $600 million home equity deal in the market, and Bear Stearns had a $455 million subprime MBS deal set to price.
Deutsche Bank also had a $200 million real estate ABS backed by program exceptions, and J.G. Wentworth was still shopping a $227 million structured settlement offering, also led by Deutsche Bank.
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