VW Credit (VCI) is in the market with Volkswagen Auto Loan Enhanced Trust 2012-1 (VALET 2012-1) worth $1 billion.
This is the first transaction issued by (VCI) for the year, according to a Fitch Ratings presale report.
The transaction is collateralized by new and used Volkswagen and Audi cars, minivans, and light-duty trucks and underwritten by VCI.
The rating agency gave provisional ratings of 'F1+sf' to the A1 notes worth $195 million, 'AAAsf' to the A2 notes worth $310 million; 'AAAsf' to the A3 notes worth $390 million; and 'AAAsf' to the A4 notes worth $105 million.
Ford Motor Credit Co. is marketing its Ford Credit Auto Owner Trust 2012-A (FCAOT 2012-A) worth roughly $ 1.074 billion.
Moody's Investors Service has assigned provisional ratings to the deal. This is the first public prime retail auto loan ABS of the year for the year.
The complete rating actions from Moody's are as follows: Class A-1 'P-1 (sf)'; Class A-2 'Aaa (sf)'; Class A-3 'Aaa (sf)'; Class A-4 'Aaa (sf)'; Class B 'Aa1 (sf)'; Class C 'Aa3 (sf)' and Class D 'A3 (sf)'.
VCI is the indirect wholly owned captive finance subsidiary of Volkswagen Group of America, which is, in turn, a wholly owned subsidiary of Volkswagen AG, Fitch said.
In other deal news, Bank of Montreal (BMO) is in the market with a card ABS called Master Credit Card Trust Series 2012-1.
According to a DBRS report, which is rating the deal along with Moody's, for the Class A Notes, credit enhancement will be available via a 5.5% subordination, excess spread and the Cash Collateral Account. This account will be zero at closing, but can actually build up to 5% of
the initial allocated amount if the excess spread is compressed below stated levels. For the Class B Notes, credit enhancement will be available via excess spread and the cash collateral account.
In terms of the mortgage sector, Redwood Trust is selling its fourth private-label Jumbo mortgage deal since the crisis called Sequoia Mortgage Trust 2012-1. The deal, worth roughly $415 million, is larger than the company's previous Jumbo offerings.
According to a Bloomberg report, American Home Mortgage Servicing is planning to sell a $548 million deal backed by mortgage servicing advances. The transaction, the report stated, is lead by Barclays Capital with Deutsche Bank Securities and Royal Bank of Scotland serving as co-managers.
Bloomberg also reported that the first CMBS conduit for the year from Citi and Goldman Sachs might price next week. The public classes on the transaction are worth roughly $808 million, the news service stated. Freddie Mac is also expected to sell a multifamily-backed CMBS, Bloomberg also reported.