HCA Will Use Floor-Plan Financing for New ABS Issuance

Two of the industry’s largest auto finance captives will continue to drive company growth by tapping the ABS markets, according to company execs, who spoke on a panel at the ABS East Conference in Miami Beach this week.

Jay Banerjee, manager of treasury at Hyundai Capital, said the OEM has had huge success over the last few years, and that ABS provides most of funding for the captive. Currently, HCA taps both the loan and lease markets, and going forward, Banjeree said, it will also tap its floorplan financing for new ABS issuance.

Ford Credit’s Sam Smith, director of long term funding and securitization, told the ABS East audience that Ford Credit’s securitization mix has gone down, but at the same time, its overall balance sheet has grown. In absolute dollars, Ford Credit’s ABS is very stable, according to Smith. Ford Credit securitized $14 billion in loans in 2012, $14 billion in 2013, and he said the captive is on track to reach the same level this year.