Auto ABS heats up with $4.7B of issuance | Auto Finance News | Auto Finance News

Auto ABS heats up with $4.7B of issuance

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A handful of prime and subprime securitizers pumped up ABS volume this week, bringing $4.7 billion of loans and leases to market, according to presale reports from S&P Global Ratings

Auto ABS volume totaled $61.3 billion as of July 8, up 12.7% year over year, according to data from JPMorgan Securities.

On the prime side, Nissan Motor Acceptance Corp., GM Financial, and Santander Consumer USA combined  for $3.5 billion of issuance this week. NMAC completed its second transaction this year, a $1.2 billion deal backed by lease receivables. Strong investor demand may upsize the transaction to $1.5 billion.

NMAC’s retail lease portfolio totaled $21.4 billion as of March 31 comprised of $13.9 billion Nissan leases and $7.6 billion Infiniti leases, S&P noted. 

GM Financial’s $1 billion securitization marks the captive’s third issuance this year. The collateral pool consists of 38,151 prime auto loan contracts, with 87% of the loans backed by new vehicles. The longest loan term is 75 months, according to S&P. 

Santander Consumer USA, meanwhile, issued its fourth prime auto lease securitization. The $850 million transaction was backed by leases originated by SCUSA’s Chrysler Capital division. The securitized pool consists of 31,071 prime auto lease receivables, 63% of which have terms as long as 36 months. 

A trio of subprime securitizers — Consumer Portfolio Services, Exeter Finance and Prestige Financial — combined for $1.2 billion of issuance this week, as well. 

CPS’s $243.5 million deal is the lender’s third securitization this year. It consists of 9,161 loans with an average loan balance of $17,588.  

Exeter Finance issued a $625 million securitization of subprime auto loans. Exeter’s deal consists of 37,737 loans with an average loan balance of $16,562. About 23.1% of the loans are originated through CarMax’s used-car retail chain. 

Finally, Prestige Financial Services issued $313.3 million in bonds backed by subprime loans. The deal consists of 16,191 loans with an average original loan balance of $19,504. About 30.2% of the loans were issued to borrowers with active Chapter 7 or Chapter 13 bankruptcy cases, down from 38.7% in the lender’s previous transaction in September 2018.

NMAC, GM Financial, SCUSA, CPS, and Exeter deals are expected to close July 24. Prestige Financial’s closing date is July 23.

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