As per its usual, the auto ABS market this week has been busy with deals. Today alone Bank of America, Toyota Motor Credit Corp. and GM Financial priced their respective auto ABS transactions.
After these offerings comes another auto securitization in the pike.
DriveTime Automotive Group's 144A auto transaction called DTAOT 2012-1 is currently marketing.
The 2012-1 securitization is backed by a portfolio of motor vehicle retail installment sales contracts originated by the auto firm's wholly-owned unit Drivetime Car Sales Co.
This is DriveTime’s 42nd securitization since 1996 and its seventh ABS since 2007, according to a presale by DBRS. The rating agency said that this offering is similar to the DT Auto Owner Tust 2011-3 transaction that it rated in November 2011. The 2011-3 deal was the fifth securitization completed as a senior subordinate offering by DriveTime.
DBRS noted that DriveTime is a leading used-vehicle retailer in the U.S. that focuses on the sale and financing of vehicles to subprime borrowers. The automotive loans are sourced through the firm's network of 89 dealerships in 35 geographic regions and 17 states. DBRS's data is as of December 31, 2011.
DT Credit Co. is the loans' servicer for the current transaction while Wells Fargo Bank is the ABS' backup servicer.
The deal's credit enhancement comprises overcollateralization, subordination and a reserve account. The initial amount of overcollateralization should be 21.65% of the initial pool balance, DBRS stated in the presale.