As reported by Structured Finances News yesterday, the auto sector is once again showing its dominance in terms of ABS new-issue volume with another transaction from Toyota Motor Credit Corp. (TMCC). The deal is called Toyota Auto Receivables 2010-C Owner Trust (TAOT 2010-C).

Toyota's five-tranche deal is worth $1.294 billion and is managed by Barclays Capital, Citigroup Global Markets, and JPMorgan Securities.

Aside from Toyota, Chrysler Financial Corp. is preparing to come to market with a $2 billion auto ABS. Barclays Capital, Citigroup Global Markets and Deutsche Bank Securities are managing the securitization. For further preliminary details on Chrysler's transaction, please refer to the link below from the ASR Scorecards database.

For a copy of the preliminary prospectus for Chrysler, please click this link.

Meanwhile, there is also an auto offering from Australia that just priced today called FP Turbo 2010-1, which was sold by car leasing firm Fleet Partners. The six-tranche deal is worth A$178.8 million. ANZ Banking Group and Westpac Banking Corp. managed the auto deal.

The offering's 0.3-year portion reportedly priced at 75 basis points over Australia's Bank Bill Swap Reference Rate (BBSW). Its 1.5-year part reportedly priced at 165 basis points and a 2.1-year tranche was sold at 275 basis points.

Details on TMCC

Yesterday Moody's Investors Service released a presale report on the TMCC deal, which is expected to price midweek. The auto offering is backed by prime-quality retail installment auto loan contracts originated by TMCC, which has issued seventeen deals since 1993, Moody's said.

This transaction is TMCC's third public retail issuance in 2010, which is the first year TMCC returned to the public ABS market since 2003.

According to Moody's, the transaction is structured as an amortizing owner trust, which allows for a variety of maturities that are suited to the buyers' needs. In terms of credit quality the deal has a  high weighted average 755 FICO score, Moody's reported. This is higher compared with the FICO of 749 for TMCC's 2010-B deal and the 748 for the 2010-A offering.

Moody's also cited the positive selection of loans for securitization. Generally, the rating agency said that TMCC's ABS pools in 2010 have stronger credit quality compared with the servicer’s managed portfolio as TMCC selects higher quality loans for inclusion.

For instance, it has excluded loans with FICO of less than 620, with original terms exceeding 72 months, and those backed by non-Lexus/non-Toyota vehicles.

Although TMCC had been a regular ABS term issuer since 1993, it has closed only two deals since 2003 and both were in 2010. Moody's said that the lack of more recent deal performance data is compensated by detailed origination characteristics, quarterly static pool performance data, significant seasoning of the pool at deal closing, TMCC's solid corporate ratings, and relatively high Volatility Proxy 'Aaa' Level for the 2010-C transaction.

Student Loan ABS

Aside from autos, the Higher Education Loan Authority of the State of Missouri (MOHELA)is also in the market with a $496.3 milllion FFELP-backed ABS managed by Morgan Stanley and BMO Capital Markets, as earlier reported by Structured Finance News.

The series 2010-3 notes, according to a Fitch Ratings presale report, will be issued pursuant to an indenture of trust dated Sept. 1  between MOHELA and U.S. Bank, which serves as the trustee.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.