Lack of supply meets with strong demand to kick off 2004.

The U.S. ABS market's first full trading week of 2004 was, while slow, eventful nonetheless. Although just four new issues had priced as of Thursday's market close, for a total of $3.08 billion, market clearing spread levels showed the impact of pent-up demand, resulting from more than two weeks of relative inactivity. Activity is expected to pick up in the next two weeks - particularly on the home equity front - ahead of the winter conferences.

The year started off on a very positive note with the first transaction of 2004 pricing extremely tight down the credit curve. The $950 million series 2004-A home equity offering from Centex Corp., led by Credit Suisse First …