Five captive finance companies launchedauto-related asset-backeds Thursday totaling $2.8 billion. A potential upsizing for Toyota Motor Credit Corp.'s second transaction of the year could push that issuance to $3.3 billion.
Nissan Master Owner Trust Receivables, Series 2017-A and 2017-B is expected to be a $500 million to $1 billion issuance of bonds backed by floorplan receivables from credit lines from Nissan Motor Credit that finance Nissan and Infiniti dealer inventories. The balance of each notes series is set at $250 million, but the final sizing will be determined at closing. The A notes have a two-year maturity while the B notes are three years. Fitch Ratings and Moody's Investors Service have assigned a triple-A rating to each series. The transaction features initial credit enhancement of 19.41% that is in line with previous deals, while the trust’s performance continues to excel in dealer monthly payments rates (24%), asset yields, and minimal dealer defaults and trust losses, according to Fitch. The dealer concentration includes a heavy exposure (10% of the collateral pool) to AutoNation franchises, according to the pre-sale reports.