The securitization pipeline is filling up after Information Management Network's ABS East conference concluded yesterday.
Wyndham Worldwide Corp. is planning to issue a $275 million timeshare transaction called
Sierra Timeshare 2012-3 Receivables Funding LLC.
According to a Fitch Ratings presale on the deal, the notes are backed by a pool of fixed-rate timeshare loans originated by Wyndham Vacation Resorts and Wyndham Resort Development Corp.
Both firms are indirect, wholly owned operating units of Wyndham Worldwide. The 2012-3 offering is the company's twentieth Sierra deal.
Fitch reported that roughly 68.3% of Sierra 2012-3 consists of Wyndham Vacation-originated loans while the remaining 31.7% are Wyndham Resort loans.
The rating agency also noted that Wyndham's delinquency and default performance showed significant rises in the 2007–2008 vintages. Even though recent vintages under the Wyndham Resorts platform are displaying improved performance, this trend is not apparent under the WVRI platform.
Bank of Montreal (BMO) has priced its credit card deal called Master Credit Card Trust Series 2012-2. The deal was increased to $777 million from $415 million, according to Bloomberg.
Moody's Investors Service had assigned premlinary ratings of 'AAA' to the deal's Class A notes, 'A2' for the Class B notes and 'Baa2' for the Class C notes.
According to Moody's, the ratings are based on the quality of the underlying pool backed by credit card receivables, BMO's expertise as a seller/servicer, the deal's legal and structural protections such as early amortization triggers, the cross currency swap with BMO that offers a fixed-rate Canadian dollar exposure for the trust as well as credit enhancement via excess spread.
The Class A notes, which comprise 94.5% of the total invested amount, are enhanced by Class B and Class C notes that make up 2.0% and 3.5%, respectively, of the total invested amount.