Ford Motor Credit Co. priced its $1.6 billion prime auto loan securitization, dubbed Ford Credit Auto Owner Trust 2014-A, up to 10 basis points tighter than its last deal to print in 2013.
Moody’s Investors Service and Standard & Poor’s rated the latest deal. A triple-A rated tranche with a weighted average life of 1.05-years priced at 18 basis points over the Eurodollar synthetic forward curve.
The triple-A rated notes structured with a weighted average life of 2.25-years priced at 20 basis points over the interpolated swaps curve; and the 3.34-years, triple-A’s priced at 27 basis points over the interpolated swaps curve.
The double-A plus rated, class B notes with a weighted average life of 3.89-years priced at 45 basis points over the interpolated swaps curve. The double-A rated, class C notes with a weighted average life of 3.98-years priced at 60 basis points over the interpolated swaps curve.
BNP Paribas, JPMorgan, and Morgan Stanley are lead underwriters on the deal
In November, the issuer priced its triple-A rated, 2.25-years notes priced at 21 basis points over swaps and the triple-A, 3.37-years notes at 31 basis points over swaps. The class B and C notes priced at 55 basis points and 70 basis points respectively.
The weighted average FICO in the latest deal was little changed at 728 vs 726 for the pool backing Ford’s previous deal.
Ford’s deal is the first prime auto loan to come to market in 2014. Standard & Poor’s said in a recent report that it expects $65 billion in retail auto loan ABS issuance this year, with prime accounting for $40 billion. Dave Dickenson, associate director, Asset Management at Ford Motor Company,speaking at the Structured Finance Industry Group and the Information Management Network’s ABS Vegas event yesterday, said he expected spreads to continue to tighten for prime auto loan securitizations.