The U.S. ABS primary market slowed considerably last week when held up against the heavy volume witnessed in the preceding weeks. Just over $10 billion was slated to price as of Thursday evening, compared with over $20 billion the week prior. The lull is due in part to anticipation of the upcoming IMN ABS East Conference, which takes place in Boca Raton, Fla., next week, sources said. New-issue volume is expected to swell when the conference concludes.
The secondary market had a particularly active session on Thursday as over $3 billion of short home equity floaters were traded on the day, according to research from Credit Suisse First Boston. Despite the surge in home equity activity, all of the additional supply was absorbed, and spreads held in. Analysts predict that continued selling may pressure credit spreads in the coming weeks.