Ally Bank's $1.1 billion prime auto lease securitization put the year to date total for lease issuance at $2.4 billion.
The deal, AART 2014-SN2, has been assigned preliminary ratings by Fitch Ratings and Standard & Poor’s. JP Morgan has been mandated to lead the deal.
Ally plans to sell three tranches of AAA’ rated securities that have credit enhancement at 18.75%. The class A2 notes are due March 2017, the class A-3 Note are due September 2017 and the class A-4 notes are due February 2019.
A pool of closed end auto leases on new GM and Chrysler brand card back the notes. The pool consists of strong quality leases with a weighted average FICO of 762. Most of the leases, or 57%, have original terms of 37-48 months ; none of the leases have original terms greater than 48 months.
Ally Bank's total serviced portfolio consists of 570,000 lease contracts at the end of Q2 2014, with net-losses of 0.06% for H1 2014, up from 0.05% for the same period a year ago, according to the S&P presale.