The U.S. ABS primary market showed its first signs of life last week as issuance nearly doubled from the previous week to hit roughly $14 billion.
More than half of those deals had yet to price as of press time, but the largest to price was a $1.8 billion home equity securitization from California mortgage giant Long Beach Mortgage and led by Goldman Sachs. The first three tranches were retained, with the largest tranche, a $536 million triple-A-rated one-year offering, pricing nine basis points over one-month Libor. The two-year tranche priced 18 basis points plus one-month Libor, while the 3.25-year tranche priced 24 basis points over the index. The final triple-A tranche of the deal, at six years in duration, priced 34 basis points over one-month Libor.
Ace Securities Corp. also put a healthy dollop of home equity securities in the market, with a $1.25 billion offering arranged by Deutsche Bank. The one-year tranche priced at seven basis points over one-month Libor, with the two-year tranche coming in at 15 basis points over one-month Libor.
Also bringing a moderately hefty home equity offering was CBASS, with an $828 million offering led by Barclays Capital. The one-year tranche of the deal priced 29 basis points over EDSF, while the two-year tranche priced 35 basis points over swaps and the four-year tranche priced 80 basis points over swaps. The 5.6-year tranche ratcheted in from the four-year's price, and finished at 62 basis points over swaps.
Morgan Stanley was in the market with a $729 million home equity securitization that priced a one-year tranche at eight basis points over one-month Libor, and a three-year tranche priced at 20 basis points over one month Libor. The 6.5-year tranche priced 33 basis points over one-month Libor.
Cendant Corp.'s Aesop Funding trust offered at $600 million auto loan securitization to the market via Deutsche Bank and Merrill Lynch as joint-leads. The single tranche, triple-A-rated, five-year deal priced at 22 basis points over one-month Libor.
Bear Stearns was also in the home equity market with a $516 million offering, the one-year tranche of which priced nine basis points over one-month Libor, the three-year tranche priced at 22 basis points over one-month Libor and the six year tranche priced 33 basis points over one-month Libor.
Of the deals that had yet to price, Irwin Home Equity had a $312 million home equity deal in the market, Goldman Sachs had $490 million home equity deal circulating, and Ownit Mortgage Solutions had a $708 million home equity offering as well.
The student loan sector was represented by GCO Education Loan Funding Corp., with a whopping, and rare, $1.14 billion student loan securitization that had yet to price, while Barclays had a $1.218 billion home equity securitization still on the table and Bear Stearns had a $464 million securitization left in the market. Goldman also had a $904 million home equity deal circulating in the market through its GSAA trust.
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