AmeriCredit Financial Services is further boosting volume in the auto sector with a deal called AmeriCredit Automobile Receivables Trust 2010-4 (AMCAR 2010-4).

The $700 million subprime auto loan-backed securitization is reportedly set to price this Wednesday.

The seven-tranche deal is lead managed by Credit Suisse and Deustche Bank Securities while the co-leads are UBS and Wells Fargo Securities.

According to a Moody's Investors Service presale report, AmeriCredit has issued over 60 subprime transactions since 1994. This deal is the firm's sixth overall and fourth senior-sub retail issuance for 2010.

The rating agency’s cumulative net loss expectation is 11.50% and Volatility Proxy Aaa Level is 40.00% for the 2010-4 asset pool.

For earlier coverage on this deal, please click this link.

As earlier reported by Structured Finance News (see related article), Nissan Motor Acceptance Corp. also has a $750 million auto lease securitization in the pipeline.  Like AmeriCredit, the deal is also expected to price Wednesday.

This new auto deal called  Nissan Auto Lease Trust 2010-B is offering three triple-A, fixed rate tranches as part of the capital structure.

Auto issuance has indeed significantly increased asset-backed issuance this year. Wells Fargo analysts said that so far this year, new issue auto ABS stood at $41.8 billion as of Oct. 31 and accounted for 48% of total issuance.  

Volume, according to analysts, is likely to remain on track to reach around $50 billion for the full year. This amount compares to the year-to-date total for 2009 of $43.6 billion.

They added that triple-A prime auto ABS spreads have widened eight basis points to 12 basis points and are retracing the tightening seen over the summer.

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