The U.S. primary ABS market maintained momentum last week pricing close to $10 billion for the third consecutive week. Real estate ABS accounted for roughly one-third of total new issuance. Additionally, as of Thursday's market close, just over $3 billion remained in the pipeline slated for a Friday session pricing.
Countrywide Home Loans Inc. was in the market with a pair of offerings, one backed by Alt-B MBS collateral and the other by subprime MBS. The $535.17 million subprime deal was on target across the credit spectrum. The 3.22-year triple-A rated notes priced within guidance at 20 basis points over one-month Libor, while the longer dated seniors, with a 6.65-year average life, cleared at 31 points over one-month Libor. The 4.85-year mezzanine bonds also priced in-line with guidance to clear at 41 points over Libor. Down in credit, the triple-B minus rated 2.7-year average life subordinates cleared at 190 basis points over Libor.