GMF Comes to Market with $1 Billion Lease Securitization
General Motors Financial Co. is prepping its first lease securitization of 2015, backed by $1 billion of prime and nonprime lease contracts acquired by General Motors, according to a presale report from Fitch Ratings.
The GMALT 2015-1 trust has a weighted average Fico score of 736 — up from 721 in the previous GMALT 2014-2 trust. The 2015-1 trust has a weighted average seasoning of 4.8 months, down from 8.8 months in the previous offering, but is “in range of most lease ABS transactions rated by Fitch,” according to the report.
GMF’s U.S. managed total lease portfolio stood at $5.96 billion as of Dec. 31, 2014, according to the report, a significant increase from $2.6 billion at year-end 2013. Fitch credits the increase in lease originations primarily to “General Motors’ higher emphasis on offering its customers lease options through its captive GMF.”
GM revealed in mid-January that GMF would be the exclusive provider of subvented leases for Buick and GMC dealers, a business that had primarily been offered through Ally and U.S. Bank in the past. GMF also combined its disparate operating systems over the course of 2014, Chief Operating Officer Kyle Birch told AFN in January.
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