The U.S. ABS primary market wrapped up last week with nearly $8 billion priced in a wide variety of asset classes and a full pipeline for the week ahead. While home equity ABS continues to dominate supply, last week saw equipment loan collateral, student loans and a NIM, in addition to a high-quality auto loan and credit card subordinate tranche.

USAA, with arguably the best performing collateral in the auto sector, tapped the market for $1.8 billion at levels only a select few captive lenders can fund. The once-a-year ABS issuer took advantage of the absence of top-tier auto loan supply over the past month, when Volkswagen priced its $1.2 billion 2003-1 deal June 18. Led jointly by Banc One Capital Markets and Deutsche Bank Securities, USAA cleared at four basis points over EDSF for one-year paper and five basis points over swaps for two-year supply, each one basis point inside of VW's comparable classes. The three-year A4 tranche priced to yield three basis points over swaps, on top of VW.

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