American Honda Finance Corp. has launched its first captive-finance auto securitization of the year in a $1.03 billion notes issuance through Honda Auto Receivables 2016-1 Owner Trust.

The notes are backed by Honda’s typically strong collateral in prime loans with high-quality credit borrowers (average FICO of 761) and lengthy seasoning (13.61 months), and supported by a hard credit enhancement of 2.75% (including a 0.25% reserve funded at closing).

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