Capital One is roadshowing its first ever senior/subordinated non-prime auto deal this week, a Capital One official confirmed. The transaction will be led by Citigroup Global Markets and Wachovia Securities and will be structured down to the triple-B level. The official said the deal is expected to hit the market next week, but was unable to comment on the deal's size.
Unlike some of FIGRE Trust's previous securitizations, there is no performance trigger related to the net weighted average coupon rate.
Credit risk transfers, a means by which banks can move risk off their balance sheets, earned considerable bipartisan support in a House Financial Services subcommittee hearing Wednesday.
Loans were underwritten to Fannie and Freddie guidelines, or to Ginnie Mae standards that apply to securities backed by jumbo loans ineligible for GSE pools because of their loan size.
Any additional securities that the transaction issues will rank equally with the class that has the same class designation.
The new law adds rules, including counseling requirements, which would put severe constraints on originations of HEIs, an industry representative said.
The credit startup is seeking a limited-purpose charter from federal regulators through the Competitive Equality in Banking Act's credit card bank carveout.
