The securitization pike is filling up with deals from the various assets classes, including autos and equipment ABS.
BMW is issuing a new $1 billion auto loan securitization deal called BMW Vehicle Owner Trust (BMWOT) 2011-A.
The 2011-A pool is backed by new and used BMW and MINI automobile, light-truck, and motorcycle loans originated and serviced by BMW Financial Services, which is a wholly owned subsidiary of BMW of North America.
Fitch Ratings issued a preliminary rating on the offerings. The deal will offer investors three triple-A rated tranches.
Fitch said that the borrower credit quality for the pool has improved compared with BMW's 2010-A and 2006-A securitizations. The weighted average (WA) credit score on the current pool is 759 and used cars total roughly 50%, which has decreased from prior transactions. The WA original term is 58.7 months, and the pool includes a concentration in extended-term contracts that is low relative to other deals of this kind.
However, hard credit enhancement (CE) on the current deal is lower than that of the 2010-A transaction but higher relative to 2006-A but losses on BMW FS’ retail loan portfolio and the 2010-A securitization reflect the substantial improvement in portfolio quality that began in 2009.
"Lower losses have additionally been supported by the economic recovery and strong used vehicle values supporting higher recovery rates," Fitch said.
As reported on Friday by ASR, CarMax is issuing a deal backed by a pool of motor vehicle retail installment sale contracts.
The company is coming to market with a $650 million offering under its CarMax Auto Owner Trust 2011-2. The joint bookrunners are JPMorgan Securities, Bank of America Merrill Lynch and Wells Fargo.
Barclays Capital, RBC Capital Markets and Scotia Capital are the co-managers on the transaction.
Fitch expects to rate the 2011-2 transaction, which is backed by primarily used car and light-truck/SUV loans originated and serviced by CarMax Auto Finance. This is a unit of CarMax Business Services, which is, in turn, the wholly owned captive finance subsidiary of CarMax, the largest used-vehicle retailer in the U.S. operating under the CarMax Auto SuperStores brand.
For the complete copy of the propspectus supplement on the deal, please click here.
In Canada, there is also an auto deal called Ford Auto Securitization Trust 2011-R. According to a Bloomberg report, the C$534.6 million transaction is public in Canada while being marketed as a 144A private placement in the U.S.
Joint leads Royal Bank of Canada, CIBC, and HSBC. The co-managers are Bank of Montreal and TD Securities, Bloomberg reported.
On the equipment side, CNH Capital America is in the market with CNH Equipment Trust 2011-B worth $772.7 million. The trust will issue $750 million of Class-A notes and $22.798 million of Class-B Notes.
Royal Bank of Scotland (RBS) and Barclays are joint bookrunners on the deal.
Citigroup Global Markets, Credit Agricole Securities, RBC Capital Markets, and Societe Generale Corporate & Investment Banking are the co-managers on the transaction.
For a complete copy of the Securities and Exchange Commission filing on the ABS, please click here.
Two deals have surfaced on the credit card front, Discover Financial Services and GE Capital are selling their respective card offerings.
GE is in the market with a $619 million ABS called GE Capital Credit Card Master Note Trust, Series 2011-3.
Moody's Investors Service has assigned provisional ratings of 'Aaa (sf)' rating to the senior Class A Notes; a 'A2 (sf)' rating to the Class B notes, and a 'Baa2 (sf)' rating to the Class C Notes.
Bloomberg also reported that Discover is in the market with a $750 million credit card ABS that might be pricing mid-week. Joint lead managers on the deal are Barclays and Credit Suisse. Co-managers Citigroup, Deutsche Bank Securities, Goldman Sachs, JPMorgan Securities, and RBS.
Meanwhile, Moody's is rating the roughly $207.2 million investment recovery bonds issued by Entergy Louisiana Investment Recovery Funding I, LLC which is a a special purpose entity wholly owned by Entergy Louisiana in whose service area the investment recovery charges will be collected.
The proceeds from the offering will be used by the firm for investment recovery costs related to a cancelled repowering project.
