Conn's rewarded for defensive short deal

摘要

Southern retailerconn's has avoided the spread drift in other parts of the US ABS market by offering investors a quick bang for their buck on its first rated securitisation since 2012. The US$564.05m bond backed by sub-prime consumer loans appealed to investors looking to stay "short and nimble" in a rocky market, a person familiar with the deal said. Conn's saved some 25bp-50bp from the widest range of guidance at a time when most issuers of off-the-run ABS bonds have been forced to widen pricing to clear deals. "Overall, spreads have moved wider," the source told IFR. "But on [these] front-pays, you don't have to wait too long to get your money back."