The asset-backed securitization market has been jumpstarted this year with a pair of deals backed by dealer floorplans and nonprime loans.
Captive Ford Motor Credit Co. issued $1.25 billion of floorplan loans this week, while nonprime lender Tidewater Finance issued a $106 million two-tranche deal.
Ford Credit’s securitization is backed by a guarantee from the Federal Reserve, as part of the Term Asset-Backed Securities Loan Facility. Tidewater’s issuance, meanwhile, is not eligible for the TALF program.
Here are some details of each deal:
Issuer: Ford Motor Credit Co.
Amount: $1.25 billion
Lead Managers: Bank of America, RBS, Goldman Sachs
Loan Type: Dealer floorplans
TALF-Eligible: Yes
Issuer: Tidewater Finance
Amount: $106 million
Lead Manager: BB&T
Loan Type: Nonprime loans
TALF-Eligible: No
The TALF program is slated to end March 31, though analysts and industry executives question whether the government will extend the program again. It was originally scheduled to end Dec. 31, 2009.
Will the auto securitization market healthy enough to proceed without TALF by 2Q?
