The U.S. primary ABS market was in bloom last week, pricing roughly $9.6 billion as of Thursday evening. The home equity sector accounted for over $6 billion in new issues, including two deals well over the $2 billion mark.

New Century Financial tapped the market for $2.8 billion via joint leads Credit Suisse First Boston and Lehman Brothers. The offering priced in line with expectations across the capital structure. The three-year, triple-A rated notes cleared at 18 basis points over one-month Libor relative to talk in the high teen area over. The 4.61-year mezzanine notes priced at 45 basis points over Libor versus talk in the mid 40 points over Libor area. Down in credit, the triple-B rated notes, with a 4.48-year average life, cleared at 135 basis points over Libor, relative to talk in the 130 to 135 basis point range over Libor. The 4.47-year triple-A minus rated notes priced at 175 points over one-month Libor, relative to talk set at 175 to 180 basis points over Libor.

AmeriQuest Mortgage came with a $2.42 billion via Morgan Stanley and RBS Greenwich Capital and wrapped by FGIC. The $1.2 million 2.87-year A2 class priced with guidance at 24 basis points over one-month Libor.

Countrywide Home Loans Inc. tapped the market for $749.9 million backed by subprime MBS. The triple-A rated 5.81-year notes priced on target at 32 basis points over one-month Libor. The 4.61-year mezzanine notes priced outside of guidance at 43 points over one-month Libor relative to talk in the 41 basis point area over one-month Libor. The single-A plus notes, with a 4.24-year average life, were on target at 64 basis points over one-month Libor. Toward the bottom of the capital structure, the 4.11-year subordinates cleared at 175 points over one-month Libor, relative to talk in the 175 to 180 basis point range over Libor.

MBNA America Bank was in the market a triple-A rated delinked single tranche offering via CSFB and JPMorgan Securities. The A class priced tight at three basis points under swaps versus guidance set at two basis points under swaps.

Ford Motor Credit was in the market with a $3.04 billion offering via Deutsche Bank Securities, JPMorgan and Lehman Brothers. The transaction created a buzz when it failed to price the previous week (see related story, p.1). The all fixed-rate offering came largely in line with the revised forecasts. The 1.84-year triple-A rated class was on target at six basis points over EDSF. However, the longer-dated 2.89-year seniors priced outside of guidance at nine points over swaps, versus talk in the eight basis point area over swaps.

At week's end, a $400 million five-year fixed- and floating-rate, XL Capital wrapped, private placement rental car transaction was completed. Also announced was a $150 million offering from Capital One Financial's COMET trust. In the mortgage sector, People's Choice completed its $1 billion, floating rate home equity transaction. Two home equity dealer shelf transactions were also announced: a $575 million Deutsche Bank offering and a $292 million Bear Stearns transaction.

Copyright 2005 Thomson Media Inc. All Rights Reserved.

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