Ford Motor's Globaldrive Series D transaction, back by German auto loans, will begin repayments on 800 million (US$946 million) of outstanding notes after breaching an early amortization trigger in March. The situation is not surprising, market sources said. Based on the performance of the deal, investors have been expecting this for some time.

Some view the event as positive, as early amortization is structured into the deal for the benefit of investors to mitigate credit loss. In essence, the deal is working as it should. Others believe the triggers in European auto deals are set too conservatively to offset initial thin credit enhancement levels. Industry sources believe that this situation may not be isolated to the Globaldrive deal, but rather part of a broader trend of European auto loan securitization programs, and that more early payouts are on the horizon.

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