Fresh off the heels of the second-quarter synthetic auto loan securitization, CARSS Finance 2004-A, Banc of America Securities structured the next step of auto loan ABS, although it's unlikely to be copied by The Street. With the inaugural Global Execution Auto Receivables Securitization (GEARS) trust, BofA is offering - almost exclusively to European investors - the double-A through double-B plus rated cashflows of $2 billion in prime auto loans, originated by Bank of America, N.A.

The investor base for the GEARS 2004-A deal is more akin to that for a CDO, sources close to the transaction reported, with the involvement of typical CDO equity investors participating in the preferred equity E1 and E2 tranches, which collectively make up 0.5% of the transaction.

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