This week auto issuance is once again driving volume in the ABS market with deals from Ford Motor Credit Co., Honda Motor Co. and BMW.
Total issuance in the sector this month is $6.7 billion from six deals so far, according to Standard & Poor's.
This brings year-to-date auto-related ABS volume to $34 billion. S&P analysts expect auto-related issuance to top its full-year forecast of $80 billion. The 2011 number was $68 billion, according to Securities Industry and Financial Markets Association.
Ford's transaction called Ford Credit Auto Owner Trust 2012-B is worth $1.4 billion. The offering is backed by new and used automobile, light-truck, and utility vehicle loans bought by Ford Motor Credit from dealers and serviced by the company, according to a presale by Fitch Ratings.
Honda Auto Receivables 2012-2 Owner Trust, which is worth $1 billion, is also marketing. Fitch reported that this will be the second ABS issued in 2012 by American Honda Finance Corp. (AHFC), which is a wholly owned captive finance subsidiary of American Honda Motor Co.
(AHMC). AHMC is a wholly owned unit of Honda Motor Co.
The securitization is backed by new and used Honda and Acura automobiles, light-trucks, and utility vehicle loans originated and serviced by AHFC.
Meanwhile, BMW's $750 million BMW Vehicle Lease Trust 2012-1 is also in the market. The notes will be backed by a pool of closed-end vehicle leases, all are new vehicles manufactured by BMW and originated via BMW Financial Services (BMW FS), which will also act as the servicer on the transaction. BMW FS is a wholly owned unit of BMW of North America, according to Fitch.
Fitch is also rating the $514 WHEELS SPV, LLC 2012-1. According to Fitch, both the obligor and industry concentrations have gone down from the firm's 2009-1, which has contributed to Fitch's lower loss hurdles in this deal versus to the prior. The top five obligors by lease balance comprise 14.82% versus 20.70% in the 2009-1 securitization.
Other transactions in the market include DriveTime Automotive Group's 144A auto transaction called DTAOT 2012-1. For ASR's coverage on the offering, please see this link.
On the equipment side, CIT also has a $750 million ABS currently marketing, according to a report from Bloomberg.