Eight issues of auto-related securitizations totaling over $5 billion hit the market Wednesday and Thursday, marking one of the busier weeks of the year. As of late Thursday, there were two bond offerings backed by prime auto loans (Ford, Honda), three backed by subprime auto loans (Santander Consumer, GLS, United Auto Credit Corp.), two backed by dealer inventory financing (Ally, Navistar), and one by commercial fleets (Enterprise).
Issuance of all kinds of asset-backeds is on the rise, thanks to a credit environment and a risk-on investment setting. Still, the heavy volume of auto-related issuance stands in sharp contrast with the decline in auto sales this year. Some $10 billion of auto loan, leases, floorplans and rental car ABS was issued in May, bringing the total for the first five months of the year to $45 billion, per S&P Global.