AmeriCredit plans to issue a $900 million subprime auto loan securitization, its fifth deal so far for 2013.
The deal, AmeriCredit Auto Receivables Trust 2013-5 ,has been assigned preliminary ratings by DBRS and Moody’s Investors Service.
On offer are two triple-A rated, class A tranches; a double-A rated , class B tranche; single-a rated class C tranche; triple-B rated class D tranche; and double-B rated class E tranche.
Deutsche Bank, Citigroup, Goldman Sachs and Wells Fargo are lead managers on the deal. Barclays, BNP Paribas, BofA Merrill Lynch and JP Morgan are co-managing the senior notes.
Auto-related ABS issuance, both on the subprime and prime level, has been active this year, but analysts at Standard & Poor’s said that in 2014 issuance may slow. That is because improved ratings at the issuer level could lead to the increased use of unsecured credit.
GM reported Q3 operating profit of $2.2 billion, up 29% y/y in North America. Chrysler reported Q3 net income of $464 million, up 22% y/y. Ford’s pre-tax income rose 20% y/y to $2.6 billion in Q3.
“We forecast $152 billion of issuance of auto, credit card, student loan, and equipment ABS for 2014, down from our $160 billion projection for 2013,” said S&P analysts. But the analysts noted that while volumes may fall in the auto loan space, the asset class will continue to “dominate the ABS market in 2014.”