Ford Motor Credit, Huntington Bank, and Nissan Motor Acceptance are getting set to tap the securitization market with TALF offerings.
TALF, an acronym for the Term Asset-Backed Securities Loan Facility, is a Federal Reserve program meant to restore the flow of capital to the lending sector.
According to published reports, Ford Credit is readying $2.95 billion of bonds, and NMAC is preparing to sell a $1.3 billion package. The Ford deal size exceeds to total amount of auto loans securitized so far this year. To date, $2.4 billion of auto-backed ABS has been issued, compared with $9.6 billion at this time last year.
As for pricing, the largest triple-A-rated tranche of the Ford deal is expected to yield 215 basis points to 225 basis points more than benchmark interest rates, while the comparable portion of the NMAC deal is slated to yield 185 basis points to 215 basis points.
World Omni Financial Corp. is also reportedly prepping a deal.
