The U.S. ABS primary market priced $12 billion in new issues having priced as of press time Thursday and more were seen pricing in Friday's session, as mixed feedback from various economic indicators pushed the market along to a solid, but by no means stellar week.
AmeriQuest Mortgage had the largest deal in the market last week with a $2 billion home equity deal led jointly by Citigroup Global Markets and JPMorgan Securities. The one-year senior tranche of the deal priced at eight basis points over one-month Libor, while the two-year tranche was done at 14 basis points over one-month Libor, and the 6.83-year A2D class priced at 32 basis points over one-month Libor.
GMAC-RFC had two home equity deals in the market, one totaling $1.5 billion. The issuer was offering investors $1.1 billion of series 2005-EFC1 paper from its RAMP vehicle and $402 million of series 2005-KS5 paper from its RASC trust.
The further along of the two, RASC 2005-KS5, led by JPMorgan Securities, saw its one-year tranche being talked in the eight basis point area over one-month Libor, with the three-year tranche talked in the 20 basis point area over and the six-year tranche offered in the 32 basis point area over one-month Libor.
Accredited Home Lenders brought a $1 billion home equity deal led by Goldman Sachs and Lehman Brothers. The one-year tranche of the deal priced at 10 basis points over one-month Libor, on the outer rim of talk in the nine to 10 basis points over one-month Libor range. The three-year tranche priced at 21 basis points over one-month Libor, at the tight end of talk set in the 21 basis points to 23 basis point range over Libor. The mezzanine tranches of the deal priced on top of or through guidance across the board.
Saxon Mortgage was in the market with a $980 billion home equity deal led by Credit Suisse First Boston. The one-year tranche of that deal priced on top of talk at nine basis points over one-month Libor, while the two year tranche priced at 16 basis points over one-month Libor, versus talk in the 15 basis point area over Libor. Lehman Brothers was also in the market with a floating-rate home equity deal that priced late in the week before last. The $675 billion deal priced its one-year tranche at eight basis points over one-month Libor and the three-year tranche priced 20 basis points over one-month Libor.
A $1.4 billion home equity ABS from Encore Credit Corp. was expected to price Friday via Countrywide Securities. The series 2005-2 offering contained all fixed-rate paper, with the one-year 2A1 class talked in the nine basis point area over one-month Libor and the 3.5-year 2A3 class seen pricing in the 24 basis point area over Libor.
SoundView Mortgage priced a $500 million home equity deal, the one-year tranche of which priced ten basis points over one-month Libor, the two-year tranche at 16 basis points over Libor. The 3.5-year tranche priced 25 basis points over one-month Libor.
The auto sector priced two deals last week, one a $1.1 billion Ambac-wrapped nonprime auto deal from Triad Financial Corp. The deal represents Triad's first deal as a stand-alone issuer, after being acquired by a consortium of investment firms from Ford Motor Co. earlier this month. The deal was led by Citigroup and Goldman. Its one-year tranche priced at eight basis points over EDSF, the wide end of talk, while the two-year tranche priced at 13 basis points over swaps, one basis point wide of talk.
AmeriCredit Corp. priced a $1.35 billion nonprime auto deal, which was upsized from $1 billion. One banker said that since the three-year tranche of the deal was floating, many fixed-rate investors moved into the two-year, causing that tranche to be oversubscribed and price at 11 basis points over swaps - two basis points through guidance. The three-year tranche priced on top of guidance at eight basis points over one-month Libor. The deal was led by Barclays Capital and Lehman Brothers and was insured by a full MBIA wrap.
The credit card sector was fairly active last week with three small- to mid-sized deals in the market. Chase Manhattan Bank, N.A. priced a $650 million, 3.73-year deal that priced on top of guidance at two basis points over one-month Libor.
Advanta Corp. priced a $250 million deal led by Deutsche Bank Securities and Merrill Lynch from its business card program. The three-year single-tranche deal priced at seven basis points over one-month Libor. MBNA America Bank also was seen with a $125 million, five-year triple-B rated credit card floater led by Deutsche Bank. The one-tranche deal priced 41 basis points over one month Libor, one basis point through guidance.
John Deere Capital tapped the market for its annual appearance in the ABS market, pricing $740 million of construction equipment loan-backed notes via CSFB and Merrill Lynch.
One of the more interesting developments on the week was the downsizing of a dealer floorplan deal from Textron Financial Corp., which had a quarter of its size lopped off going from $1 billion to $750 million. Spreads on the senior tranche of the deal priced three basis points wide of talk at 12 basis points over one-month Libor versus talk in the nine basis point area over Libor (see story p. 1).
Textainer Equipment Management priced the shipping container lease-backed offering it had marketed the previous week via Wachovia Securities last Monday. The $580 million five-year Ambac-wrapped offering priced in line with indicative levels at 25 basis points over one-month Libor.
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