The ABS primary market is back on track with another solid summer week of nearly $14 billion of new issues priced and circulating in the market.

Last week the Federal Reserve raised the target Federal Funds rate another quarter-point to 3.5%, but the move hardly ruffled any feathers in the ABS market. Investors had a healthy variety of deals to digest. Along with the usual spate of real estate deals, there were autos, credit cards, a student loan deal, an equipment deal and even a deal backed by toll road receivables, a relative rarity in the U.S. market.

That deal was issued by Chicago-based Skyway Concession Co. and consisted of $1.4 billion in FSA-wrapped notes split between two triple-A-rated tranches led by Citigroup Global Markets and Goldman Sachs. Its 12-year A tranche priced at 28 basis points under three-month Libor, two basis points inside guidance. The 17-year B tranche priced at 38 basis points over three-month Libor.

Marlin Leasing priced a $340 million deal backed by office equipment leases via JPMorgan Securities. The deal priced in-line with guidance all the way down the waterfall, with the 0.42-year tranche pricing at nine basis points over five-month Libor, the 1.21-year deal pricing at 17 basis points over EDSF and the 2.15-year tranche pricing at 21 basis points over swaps.

American Express Centurion Bank priced two $700 million credit card deals last week via JPMorgan and RBS Greenwich Capital. One was a three-year deal, which priced its triple-A notes flat to one-month Libor, one point wide of guidance. The seven-year deal priced its senior notes at at seven basis points over one-month Libor, flat to guidance.

Capital One Financial Corp. also made its contribution to the credit card sector with a $500 million, seven-year deal led by Citigroup and RBS Greenwich, which priced at four basis points over swaps. National City Bank priced a five-year $600 million credit card deal led by JPMorgan, which priced its A tranche at five basis points over one-month Libor.

The lone auto deal to price was a $1.49 billion offering from American Honda Finance backed by prime auto loans led jointly by Deutsche Bank Securities and JPMorgan. The one-year tranche of that deal priced flat to EDSF, while the two-year tranche priced at two basis points under swaps and the 3.22-year tranche at two basis points over swaps.

Leading the real estate sector was a $2.06 billion home equity deal from New Century Financial by Barclays Capital, CSFB and Deutsche Bank. The one-year tranche of that deal priced at 11 basis points over one-month Libor - flat to guidance - while the three-year tranche priced at 27 basis points over one-month Libor - one point wide of guidance. The 6.52-year tranche of the deal priced at 37 basis points over one-month Libor.

Accredited Home Lenders Inc. weighed in with a $1.1 billion home equity deal led by Credit Suisse First Boston and Morgan Stanley. The one-year tranche of the deal priced on the inner rim of guidance in the 10 to 11 basis points over one-month Libor range to finish at 10 basis points over, while the 3.5-year tranche priced at 25 basis points over one-month Libor.

Countrywide Home Loans Inc. completed its eighth securitization of the year from its standard home equity shelf, a $648 million in home equity ABS last week, with a one-year tranche that priced at one basis point outside guidance to hit the board at 13 basis points over one-month Libor. The three-year tranche of the deal priced at 24 basis points over one-month Libor, one-point inside guidance. The 6.46-year tranche priced at 38 basis points over one-month Libor.

Rounding out the crop of real estate deals that priced last week, Bear Stearns priced a $377 million subprime MBS deal, with a 1.31-year tranche priced at 29 basis points over one-month Libor and a double-A rated, 3.74-year tranche priced at 59 basis points over one-month Libor.

As always, there were a number of deals still circulating as of press time. One was a $1.27 billion prime auto loan deal from the Goldman Sachs principal finance shelf. The 1.21-year deal was being talked in the five to six basis point range over EDSF, while the 2.15-year tranche was being talked in the five to six basis point range over swaps and the three-year tranche was being talked in the eight basis point area over swaps.

A student loan deal made its way into the market but did not price, that deal was a $142 million deal led by National Collegiate Funding and backed by FFELP collateral. Banc of America Securities led the two-tranche deal which had a tiny $25 million A class tranche and a double-A-rated B tranche being talked at 40 basis points over one-month Libor.

Of the real estate deals remaining on the table, the largest was a $1.3 billion offering from Opteum Mortgage Acceptance Corp. Lehman Brothers was marketing a $379 million subprime MBS deal, while UBS was circulating a $250 million second lien MBS deal that had yet to price, and rounding out the crowd was a $218 million second lien MBS deal from Nomura Securities.

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

http://www.asreport.com http://www.sourcemedia.com

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.