Ally Financial is marketing a $1 billion securitization of subprime auto loans.
The deal, Capital Auto Receivables Asset Trust 2014-1 has been assigned preliminary ratings by Moody’s Investors Service. Ratings on the class A notes are Aaa’; the class B notes are rated Aa1’; the class C notes are rated Aa3’; and the class D notes are rated Baa1’.
Barclays, Citigroup and Credit Agricole Securities are the lead underwriters on the deal.
CARAT 2014-1 is Ally Financial’s fifth public transaction under the CARAT program since 2008, all of which have been issued since the start of 2013, according to the Moody’s presale report.
Keeping in line with the previous securitization issued under CARAT, the latest deal features a one-year revolving period whereby proceeds from loan payments during the first 12 months of the transaction may be directed to the purchase of new loans to add to the collateral pool.
CARAT 2014-1 has a loan-to-value ratio of 106%, which is higher than that of CARAT 2013-4 at 102% and in line with the LTV of the previous three CARAT transactions issued in 2013 which were near 106%, according to the presale report.
Similar to the 2013 transactions, in the latest deal 77.25% of the loan pool balance was originated in contracts with original terms greater than 60 months.