ABS primary supply slows into quarter-end

Mon Mar 24, 2014 5:17pm EDT
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By Adam Tempkin

NEW YORK, March 24 (IFR) - ABS dealer offering levels were mostly unchanged on Monday across all asset classes, as the primary market remained quiet before the quarter-end.

Syndicate managers said that the majority of banks got their business done early last week, which was particularly robust with USD6bn pricing. Most books are closed for the quarter as of this week, sources said.

Only one USD400m auto-lease transaction from Hertz surfaced today, as well as a Canadian-dollar ABS issue from Ford Credit Canada, for C$644.3m, which is typically looked at only by Canadian investors. The Hertz deal started pre-marketing late last week.

The second-ever single family rental trade, from Colony American Homes, was also announced last week and continued pre-marketing today. JP Morgan and Credit Suisse have started to gauge investor demand for the USD514m deal, and those that attended meetings last Friday said that interest was strong.


Year-to-date ABS supply stands at USD49.8bn versus USD44.4bn at the same time last year, according to IFR data.

Triple A prime auto spreads widened by 1bp to 2bp across the curve as of last Friday, while five-year and seven-year Triple A FFELP student-loan ABS spreads tightened by 2bp, according to traders.   Continued...