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.

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