Nissan Motor Acceptance Corp. closed its third ABS of 2017 yesterday, to the tune of $1.5 billion, and featured a higher Fico and longer loan terms than previous 2017 securitizations.
The 2017-C securitization is backed by prime-quality retail installment auto loan contracts including a mix of prime receivables, backed by cars, crossover vehicles, sports utility vehicles (SUVs), and light-duty trucks, according to a pre-sale report from Moody’s Investors Service.
Over 64% of the collateral pool is composed of loans with an original term greater than 60 months. This exposure is higher than that of recent Nissan transactions, which ranged from 53% to 64%, according to the report. The weighted average term for this pool was 67 months.
The 2017-C pool has a weighted average Fico of 775, and a weighted average APR of 2.16%. The Fico is slightly higher than that of the last transaction, which had a score of 772.
The 2017-C pool has the highest weighted average Fico for 2017, and one of the lowest weighted-average APRs, according to Moody’s. There is also a lower proportion of obligors with Fico scores less than 701 and obligors in the lowest credit tier bucket than previous Nissan 2017 deals. The current pool consists of 9% in the 651 to 700 Fico range and below, compared to the 2017-B transaction at 13% and the 2017-A transaction at 10% — but there was 0% in the 600 to 650 Fico range in all three 2017 pools.
Since 2000, NMAC has been a frequent auto loan and lease ABS sponsor with over 40 retail loan transactions and over 20 lease transactions.