DriveTime Automotive Group priced its $237 million securitization backed by subprime auto loan receivables.

The deal priced its .62-year, class A notes at 45 basis points over the eurodollar synthetic forward curve ( EDSF) and  the 1.64-year, class B notes priced at 125 basis points over the EDSF. The 2.25-year class C notes and the 3.14-year class D notes priced at 220 basis points over interpolated swaps and 200 basis points respectively.

DriveTime's transaction which is rated by Kroll Bond Ratings has initial credit enhancement levels ranging from 64.25% for the 'AAA'-rated Class A notes to 22.50% for the 'BBB'-rated Class D notes.

DriveTime focuses on somewhat lower quality subprime obligors with an average FICO score ranging typically between 475 and 550. In addition, approximately 15.4% of the loans in DTAOT 2013-1 have no FICO score.

There remains another $1.3 billion of subprime auto paper still left to price. The largest, at $975.1 million, comes from General Motors Financial Services, its third deal of the year. First Investors is also marketing a $200 million deal and last Friday Consumer Portfolio Services announced its $185 million subprime auto deal.

Analysts at Credit Suisse said in a securitization research note today that the heavy new issuance calendar “is likely to keep investors focused on the primary market and may lead to further spread widening in the secondary market.”

Citigroup reported in a securitization note today that smaller subprime auto ABS  have widened out by roughly 20 to 30basis points.

“Supply saturation is certainly another factor, given the overall large amount of deals in the market,” said analysts. “We are inclined to think that some of the widening is name, sector or curve specific. Investors tend to reach limits on certain frequent issuers, which creates a need to widen the deal or a tranche to attract the marginal buyer.”




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