September 5, 2003
Secondary-market spreads are tightening for utility-fee bonds, thanks to a $500 million securitization by Dallas-based Oncor Electric Delivery last month that brought in the tightest-ever pricing for an issue of its kind. Five-year utility-fee securities, for example, were changing hands at 9 bp over swaps this week, compared to 14 bp over swaps in early August. Oncor,a unit of TXU Electric, is planning an $800 million deal for January as well.
Asset-Backed Alert (ISSN: 1520-3700), Copyright 2003, is published weekly by Harrison Scott Publications Inc.