A pool of 48,939 vehicle leases made to prime obligors is securing $1.2 billion in asset-backed securities (ABS) from the GM Financial Automobile Leasing Trust, 2021-3.
Consisting of leases on compact utility vehicles (59.9%), sports utility vehicles (11.7%) and trucks (22.6%), the collateral pool had an average initial securitization value of $28,035, about 11 months of seasoning and another 26 remaining months, on a weighted average (WA) basis, according to Fitch Ratings.
Final maturity on the notes ranges from August 2022 for the most senior A-1 class to December 2025 for class D notes, the most subordinate class.
J.P. Morgan Chase & Co. is underwriter on the transaction, for which AmeriCredit Financial Services, Inc., is the sponsor. General Motors Financial originated the underlying loans.
While auto lease ABS had performed better than expected throughout the pandemic, Fitch notes, lingering uncertainty around unemployment levels and waning government financial assistance could cloud the outlook going ahead.
The pool appears to be diverse when broken down by vehicle model, with the Silverado accounting for 13.9% of the pool; Equinox, 12.1% and the Traverse, 7.3%. The pool is also diverse geographically, as Michigan accounts for the largest percentage of leases in the pool, at 25.9%; followed by New York, with 14.9%, and Florida, with 7.8% of the collateral. Finishing the top five are Ohio, with 7.4% and New Jersey, with 5.8% of the pool.
While initial credit enhancement (CE) on the deal is lower than all previous transactions, Fitch maintains that current CE levels for each level are adequate.
Fitch expects to assign an ‘F1’ rating to the $207b million most senior A-1 class; ‘AAA’ ratings to the A-2 and A-3 classes, both amounting to $429 million; another ‘AAA’ to the $90.2 million A-4 class; ‘AA’ to the $46 million B class; ‘A’ to the $48 million C class and ‘BBB’ to the $45.9 million D class.
