Consumer ABS

Toyota Motor Credit is prepping a $1.25 billion offering of securities backed by prime auto loans.

The burgeoning industry has been hoping the Supreme Court will overturn a problematic lower-court ruling, but the unexpected passing of a conservative stalwart makes that outcome less likely.

GM Financial’s first auto lease securitization of 2016 is a $1 billion transaction that tilts toward higher average customer credit scores and more shorter-term contracts compared to previous GM lease ABS issues.

The notes are backed by Honda’s typically strong collateral in prime loans with high-quality credit borrowers (average FICO of 761) and lengthy seasoning (13.61 months), and supported by a hard credit enhancement of 2.75%. But the new securitization continues a recent trend in Honda ABS issuance that includes more long-term loans in excess of 60 months.

Flagship Credit Acceptance and Tidewater Finance Co. are marketing a combined $602 million of securities backed by subprime auto loans, according to rating agency reports.

Nonbank lender Oportun is making its fifth trip to the securitization market with a $124.8 million offering that is backed by fewer loans, but higher balances, than previous deals. Kroll has rated the deal.

Santander Consumer USA is offering its second auto loan-backed ABS of the year in a $1.059 billion securitization of its higher-quality new and used subprime loan receivables.

Online lender Avant is marketing its first rated securitization of loans to consumers with less-than-stellar credit.

BMW Financial Services has joined in the cavalcade of captive auto finance companies in the securitization market early this year a $1 billion offering of notes backed by U.S. auto leases.