First Investors Financial Services has increased the investor protections on its next offering of bonds backed by subprime auto loans.

The $226.4 million First Investors Auto Owner Trust 2017-2 is the sponsor’s second deal of the year and its 21st overall. The senior notes, provisionally rated AAA by Kroll Bond Rating Agency, benefit from initial credit enhancement (CE) of 29.5%, building up to 34%; that’s an increase of almost three percentage points from the same tranche of the prior deal (26.7%, targeting 31.45%).

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.