Strong auto sales are driving an increase in auto floorplan securitization, according to Moody's Investors Service.

Floorplans are financing, generally lines of credit, used by dealerships to fund the purchase of cars and trucks from manufacturers. When they resell these vehicles to consumers, moving them off the lot or showroom floor, the financing is paid down. Securitizing this financing allows manufacturers to get the financing off of their balance sheets.

Issuance is rising because car sales are picking up, meaning that dealers are borrowing more to finance their fleets.

Approximately $7 billion of floorplan ABS notes were issued during the first six months of 2013, higher than the $5 billion issued for the same period in 2012, Moody's analyst Keith Van Doren noted in the report. "Higher issuance this year is a continuation of the issuance of the last few years. Over the past three years, public floorplan ABS issuance has surged to $15 billion, from $5.5 billion in 2010," he said.

Also contributing to this trend is the general rise in ABS demand and the low cost of ABS funds, relative to on-balance-sheet funding, for the automakers, according to Moody's.

In June, Ford issued two such deals for a combined $1.15 billion, as reported by ASR. Of the 2013-3 series, the senior-most A notes priced at 30 basis points over Libor. Of the 2013-4 series, the senior most-A notes priced at 55 basis points over Libor.

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