The auto securitization pipeline is filling up once again. Ally Financial is getting ready to sell a $1.06 billion ABS deal under its Ally Auto Receivables Trust 2012-4.
For the Securities and Exchange Commission filing on the offering, please click
Credit Suisse, Deutsche Bank Securities and RBC Capital Markets are the underwriters on the transaction, which is backed by a pool of fixed-rate retail instalment sale contracts and direct purchase money loans utilized to fund the purchase of new and used cars and light trucks.
Meanwhile, Kroll Bond Rating Agency (KBRA) released its preliminary ratings on four classes of First Investors Auto Owner Trust 2012-2 (FIAOT 2012-2) worth $175 million.
The deal is backed by $176.8 million of subprime auto loan receivables, the rating agency reported. It noted that the preliminary ratings reflect the initial credit enhancement levels of 20.60% for the Class A notes; 15.51% for the Class B notes; 7.59% for the Class C notes; and 2.50% for the Class D notes.
Standard & Poor's, which also rated the transaction, expects that under a moderate, or 'BBB', stress scenario, the ratings on the deal's Class A and B notes would not drop by more than a single rating category and the ratings on the Class C and D notes would stay within the two-rating category outlined in our rating stability criteria.
This deal is the firm's second ABS for this year and its ninth securitization overall.
Kroll described First Investors, which was founded 23 years ago, as an "experienced and capable" originator and servicer of subprime auto loans.
Santander Consumer USA is also going to sell an $800 million auto ABS, Bloomberg reported. The joint bookrunners on the offering, which is rated by Moody's Investors Service and Fitch Ratings, are JPMorgan Securities, Citigroup Global Markets, and Santander. The news service said that the Class A co-managers on this offering are Deutsche and Wells Fargo Securities.
On the student loan side, North Carolina Education Authority has a $402 million SLABS with RBC and Bank of America Merrill Lynch as joint leads, Bloomberg reported.
