MIAMI — Toyota Motor Credit Corp. was oversubscribed on its August $1.3 billion asset-backed securitization, due to greater investor demand, National Manager of Secured Funding Adam Stam told Auto Finance News.
The captive’s May transaction was also oversubscribed, and TMCC upsized the deal to $1.6 billion, from $1.2 billion in total gross bonds, due to higher funding needs, he added.
TMCC saw much greater investor demand in its May and August transactions, as compared with its February ABS deal, Stam said. Rising credit losses, especially with some of the subprime lenders, are “starting to get a little more attention from investors, but overall structures are very solid,” he added. “Securitization is usually a good place for investors to put their money when there is volatility going on in the world.”
For example, many investors are anticipating market volatility later this year, particularly around the presidential election and the December Federal Reserve meeting, he said. “However, prime auto ABS tends to see solid demand even in turbulent markets due to its strong credit performance over time and relatively short duration.”
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