Macquarie Equipment Finance (MEF) is in the market with its first equipment lease securitization deal. MEF is the mid-ticket equipment leasing subsidiary of Macquarie Bank Ltd. (MBL).

The $284.5 million equipment lease securitization dubbed Macquarie Equipment Funding Trust Series 2011-A is two triple-A rated tranches, which are rated by both Moody's Investors Service and Fitch Ratings.

The majority of the assets in MEFT 2011-A were originated directly by MEF, while a smaller portion was acquired from CIT Technologies Corp. when Macquarie Capital Finance Holdings (a unit of Macquarie Group) bought CIT Technologies’ entire equipment leasing business,

The 2011-A trust pool has assets that were purchased by MEF directly from a select group of unrelated financial institutions and banks that originated the leases, or from direct/indirect assignee of the originator. Although the CIT Technologies-acquired and indirect lease contracts were not originated by MEF, they were re-underwritten by MEF and receive the same quality of servicing as the direct originations.

The deal consists mostly of true leases extended to a largely corporate obligor base and secured by different types of equipment such as PC equipment (13.61%), medical equipment ( 11.95%) and disk storage equipment ( 11.17%).

MEF is also the named servicer for the MEFT 2011-A transaction. While MEF services virtually all of the contracts that it has originated or purchased in the 2011-A pool, a handful of purchased contracts will still be serviced by the originating lessor.

According to Moody's, there is a significant amount of exposure to end-of-lease equipment value in this transaction since the collateral value advanced against includes a consideration for the residual value assigned to the equipment under the lease contract.

In other deal news and as earlier reported by, Great AmericaLeasing Corp. is in the market with a small-ticket commercial equipment leasing transaction. Fitch, which released a presale report on the deal today, expects to rate $355.4 million of the transaction's notes. The transaction, called GALC 2011-1, is the tenth U.S. small-ticket equipment offering issued by GreatAmerica, according to Fitch. Proceeds from this deal will be used for general funding purposes.

Other ABS transactions currently in the market include Mercedes Benz's $750 million 144A auto lease offering and Ford Motor Co. 's $586 million dealer floorplan ABS.

According to a Bloomberg report, the Ford deal's top-rated $250 million portion that matures in 2.98 years might pay 60 basis points to 65 basis points over the benchmark swap rate.  The report also said that the deal's $250 million floating-rate portion with the same maturity and rating might yield 65 basis points over one-month Libor.

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