Mercedes-Benz Financial Services has structured a $1.3 billion securitization of auto leases and Ford is in the market with a $1.4 billion securitization of auto loans.
Mercedes-Benz’s Auto Lease Trust 2013-B is the second lease securitization deal for the issuer in 2013. JP Morgan is lead underwriter on the deal.
According to Fitch Ratings, which assigned preliminary ratings to both deals, the 2013-B pool is similar to the 2013-A lease deal issued in April.
The weighted average FICO of borrowers remains strong at 781 but Fitch said that the deal also has a lower concentration in longer term leases which has led to slightly higher residual concentration.
The class A-1 notes are marketed to money fund investors and are rated F1+’. The class A-2, A-3 and A-4 notes are AAA’ rated and are structured with 17.20% credit enhancement, an increase of 85bps from 2013-A.
Ford’s deal, Ford Credit Auto Owner Trust 2013-D is backed by new and used automobile, light-truck and utility-vehicle retail contracts. Bank of America, BNP Paribas and Sumitomo Mitsui Banking Corp are lead underwriters on the deal.
The weighted average FICO of these contracts have a score of 726. The pool is geographically diverse and the contracts have seven months seasoning. According to the Fitch presale, 41.37% of the pool if made up of loans that have terms greater than 60 months.
The deal is structured with an F1+’ rated money market tranche. The class A-2, A-3 and A-4 notes are rated AAA’ and structured with 5.50% credit enhancement.
The deal will also offer AA’- rated class B notes, A’-rated class C notes and BBB’-rated class D notes.