Investors cool on new ABS deals as sell-off deepens

摘要

Well-heeled, regular issuers were forced to price their ABS deals at the widest spread levels in four years as syndicate desks struggled last week to source demand for new trades. On Wednesday honda motor company printed a one-year Triple A prime auto loan bond at EDSF plus 37bp, a clearing level not seen for the carmaker's HAROT shelf since 2010, according to IFR data. While the four-tranche trade was eventually increased to US$850m from US$750m, the banker said the upsize was only possible because of the fatter spreads on offer. Senior bankers said desks were struggling to secure demand on some deals as big name accounts trimmed their typically large US$100m orders to bite sized US$25m.