Fifth Third Bank's follow up auto loan securitization to its March deal is both bigger and riskier.

The $1 billion transaction is backed by prime auto loans, according to a Standard & Poor’s presale report but in contrast to its $500 million 2013-A transcation, the terms of the loans included in the pool are a bit riskier, according to a Standard & Poor's presale report.

In its latest deal, the issuer has lowered the weighted average FICO to 765 down from 800 in the March deal and the weighted average seasoning has increased to 18 months from approximately 5.5 months.

The average annual percentage rate on the loans in the pool also increased to 4.30% from 2.55% and LTVs are also higher at 90.6% compared to 80.5%.

Barclays is lead underwriter on the deal called Fifth Third Auto Trust 2013-1 is structured with $288 million money market fund tranche. It will also offer investors $712 million of ‘AAA’ rated notes.

The series 2013-1 is backed by prime, fixed-rate vehicle installment sales contracts that are secured by new and used vehicles originated by Fifth Third and its subsidiaries. 


Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.