Thus far this year, new-issue auto rental fleet lease ABS is picking up as anticipated. With Hertz Rent-A-Car having completed its inaugural term securitization last week, the market has seen three issuers price deals. At least three more deals are still ahead.

Last Wednesday, Hertz priced $600 million of a series 2004-A transaction via Lehman Brothers, backed by a full MBIA wrap. The 2.5-year triple-A rated fixed-rate notes priced to yield 12 basis points over comparable swaps, with the 2.5-year triple-A floater pricing at nine basis points over one-month Libor.

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