Ally Bank priced another $1 billion of securities backed by auto loans that, while still prime quality, have weaker credit metrics than its previous securitization, in September.

Ally Auto Receivables Trust 2014-3 issued a money market tranche with credit enhancement at 5.85% and an expected final maturity of July 15, 2015; it yields 0.27%, according to a regulatory filing. 

There are also three tranches of notes with triple-A ratings from Standard & Poor’s and Fitch Ratings and credit enhancement of 5.85%. The class A2 notes due July 2016 yield 38 basis points over the Eurodollar synthetic forward curve, the class A-3 notes due February 2018 yield 36 basis points over swaps, and the class A4 notes due August 2018 yield 38 basis points over swaps.

Further down the capital stack, the double-A rated class B notes due August 2018 yield swaps plus 65 basis points; the single-A rated class C notes due August 2018 yield swaps plus 75 basis points; and the class D notes, rated single-A by S&P and triple-B by Fitch, yield swaps plus 150 basis points.

Bank of America Merrill Lynch is the lead underwriter on the transaction, which is Ally's fourth prime auto loan deal of 2014.

In its presale report, S&P stated that, although some collateral characteristics of the 2014-3 pool are better than the 2014-2 pool, others, such as the weighted average FICO score and the pool's credit tier mix, are worse.

“Overall, we believe the 2014-3 pool is marginally weaker than the 2014-2 pool,” the report states. “The 2014-3 transaction's lower weighted average FICO score and weaker pool mix were the primary factors behind our estimated cumulative net losses (ECNL) range increasing to 0.8%-0.9% from 0.7%-0.8%.”

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