Auto-loan securitizations encompassed 9% of the total European ABS volume during the year 2000, according to a recent report by Moody's Investors Service. The market also saw some unique deals come to market.
Fiat offered it's first deal last year. The EURO965 million transaction that launched in August was not only Italy's first auto-loan securitization, but the largest European transaction of that asset class. Sources have hinted that Fiat will come to the market sometime this year, securitizing its portfolio of German auto loans.
Another notable deal in the sector last year was the GBP195 million offering from Paragon Auto and Secured Finance (No. 1). That deal was the first U.K. transaction to combine two different asset classes, autos and secured second-lien mortgages. The unusual structure allowed the originator to offer a deal large enough to make it economically viable.
For 2001, Volkswagen is set to be going forward with a EURO750 million asset-backed floating-rate issue through its VCL No. 4 Ltd. This would be Volkswagen's fourth securitization of auto-lease receivables.
A GBP225 million auto transaction that was expected at the beginning of January from Automotive Financial Services Ltd. has been cancelled. The company sold its entire loan book to Capital Bank.