Growth Seen for Timeshare ABS

A $160 million timeshare securitization from Trendwest Resorts priced last week, making it the 27th time share deal since 1992. Expansion in the timeshare industry, along with timeshare collateral being fairly attractive versus other real-estate asset-backed securities, is helping lead to further securitizations in the industry.

A majority of timeshare transactions are done in accordance with Rule 144A, mainly because of their small size. Most deals are in the $100 million to $200 million range.