The U.S. ABS primary market returned from the Labor Day Holiday in full force, ushering in the new season with roughly $12 billion in new issue supply last week. The resurgence in volume likely signals an end to the market's summer malaise, exacerbated during the previous week by the onset of the Republican National Convention in New York.

Real estate ABS accounted for more than half of the volume, with about $8 billion having priced, including a $2 billion series 2004-I HELOC offering from Countrywide Home Loans seen pricing Friday.

The mortgage lender was also in the market with a $737.9 million series 2004-8 transaction that priced earlier in the week. The 2.94-year triple-A rated 2A2 notes priced within guidance at 35 basis points over one-month Libor, while the one-year triple-A rated class priced just outside of talk at 18 points over Libor versus guidance in the 16 to 17 point area.

Countrywide was in the market the previous week as well with a $2.5 billion mixed collateral senior/subordinated transaction that came with a single class wrapped by Fannie Mae. The Fannie Mae wrapped 1AV1 class, with a 2.5-year average live priced at 15 basis points over Libor, while the 2.8-year, unwrapped 2AV2 class priced at 35 basis points over.

AmeriQuest Mortgage tapped the market for $569.6 million off of its new Park Place Securities Trust shelf via RBS Greenwich Capital. The series 2004-MCW1 transaction priced largely in line with guidance, widening slightly in the middle of the credit spectrum. The 4.79-year double-A minus notes came in five points outside of expectations to hit at 75 basis points over one-month Libor. The 4.72-year triple-B plus class cleared 365 points over Libor versus guidance in the 350 to 365 point area.

Meanwhile, Barclays priced a $799.3 million deal off of its SABR dealer shelf, backed by loans originated by Option One Mortgage. SABR's 2.75-year A2 class priced at 35 basis points over one-month Libor, while its 5.27-year split-rated mezzanine class priced tight at 167 basis points over one-month Libor relative to expectations in the 170 to 175 point range.

Bear Stearns came with a $323 million home equity offering off of its BSABS vehicle. The 2.54-year triple-A rated notes priced outside of guidance at 38 basis points over one-month Libor versus guidance in the 36 to 37 point range. The 4.99-year mezzanine notes were also outside of talk at 140 points over one-month Libor compared to talk at 135 over.

Bear Stearns also priced a $242.7 million 2004-SD3 offering backed by program exceptions off the same shelf during the lull of convention week. The three-year triple-A rated notes came in on target at 39 basis points over one-month Libor. Pricing widened down in credit, with the four-year triple-B rated fixed-rate class coming in at 230 points over swaps relative to guidance of 200 points over.

Also in real estate ABS last week, Centex Corp. hit with a $900 million mixed collateral offering via Citigroup Global Markets.

Members Equity Property Ltd. came with its second Superannuation Members Home Loan Global Fund deal of the year, and seventh ever, backed by Australian MBS via joint leads Credit Suisse First Boston and Deutsche Bank Securities. The 2.55-year notes priced inside at 14 basis points over three-month Libor relative to talk at 15 points over. Later in the week, St. Georges Bank also hit with an Australian MBS offering via Barclays Capital and Credit Suisse First Boston. The $1.43 billion offering priced in line with expectations, pricing its 2.68-year dollar-denominated class at 13 basis points over three-month Libor.

GE Capital Corp. was the lone credit card issuer to come to market last week with its second credit card term offering off its GE Capital Credit Card Master Note Trust vehicle. The $1 billion offering via JPMorgan Securities and Lehman Brothers was backed by private label retail credit cards loans. The 2.99-year triple-A seniors priced at the tight end of guidance, at four basis points over one-month Libor.

The credit card sector is still waiting for a boost, with overall issuance down by 26% year-over-year, according to recent research from Merrill Lynch.

The auto sector continued its strong streak and made a respectable showing, pricing over $3 billion for the week. During the last two weeks in August, Hyundai Motor Credit, DaimlerChrysler, Wachovia Bank and Morgan Stanley all hit with auto deals. Last week, General Motors Acceptance Corp. tapped the market with a $2.19 billion wholesale dealer floorplan offering jointly led by Banc of America Securities, JPMorgan and Merrill Lynch. The five-year triple-As priced at the wide end, but within, of talk, at 10 basis points over one-month Libor, versus guidance in the nine-to-ten basis point range.

Nissan Motor Credit came with a $1.17 billion transaction backed by prime retail loans through ABN AMRO and Morgan Stanley. The transaction priced tight throughout the capital structure, with the triple-A rated 1.06-year fixed-rate class coming one-point inside at two basis points over EDSF. Similarly, the 3.14-year triple-A floater cleared at four points over one-month Libor, also one point inside of expectations.

Copyright 2004 Thomson Media Inc. All Rights Reserved.

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