Auto ABS volume surpasses 2018 levels

© Can Stock Photo / labamba

Auto asset-backed securitization volumes have already outpaced 2018’s yearend levels, according to data from JPMorgan Securities.

Auto ABS volume hit $109.8 billion year to date, a 5.6% increase from 2018’s total, according to the Nov. 22 Global ABS/CDO Weekly Market Snapshot report. In fact, 2019 marks the third straight year that auto ABS volume has increased, following an 11% spike between 2017 and 2018.

Additionally, auto lease securitization volume is set to hit a record high this year, said S&P Global Ratings Senior Director of Structured Finance Amy Martin. It had already reached $19 billion at the end of October, surpassing last year’s $15.8 billion mark. S&P is projecting auto lease ABS volumes to hit $20 billion by yearend, Martin noted.

Toyota Financial Services and Capital One Auto issued noteworthy transactions this year, Martin said. Toyota’s five-year revolving facility included a provision that 15% of the pool can have original maturities as long as 84 months — the first time a captive in the U.S. has securitized loans with terms that long, she pointed out. Meanwhile, Capital One returned to the market with two super-prime transactions.

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