In a quiet fortnight, a deal from Japanese consumer finance company QUOQ was the only issue of note to hit the market. Called Hexagon Funding 2000, the 22 billion (200 billion) transaction was backed by a portfolio of auto loans originated by the company. Deutsche Bank was brought in as lead manager and QUOQ will act as servicer for the loans.

The underlying portfolio consists of 17.364 loans with a principal balance of 22.4 billion. In total, the company has 122.3 billion in auto loan receivables outstanding. The annual rate of interest on the loans is 6.79%, with an average seasoning of 21 months.

The single tranche deal received a triple-A rating from both Moody's Investors Service and Fitch. The bonds carry 1.5-year average lives and pay a coupon of 0.84% Expected maturity for the notes is December 2003.

Credit enhancement will come from overcollateralization (9.8%), a 470 million cash reserve and any excess spread accrued on the notes.

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