Auto ABS continues to lead consumer ABS volumes and the latest deal to emerge in the pipeline comes via Honda's $1.0 billion Honda Auto Receivables 2011-3 Owner Trust.
The deal, which has been rated 'Aaa' by Moody's Investor Service, will offer three tranches as part of its capital structure.
According to Barclays Capital analysts, auto-related securitizations remain the leading driver of nonmortgage securitization volume with $50.5bn in total issuance as of September 30, largely similar to the volume over the same period last year. Barclays said they expect total auto related ABS issuance to reach $65bn in 2011.
Outside of Autos, another sector that continues to drive volumes for securitization is the non-traditional space. This week the latest deal to emerge is a $136.6 million equipment contract securitization sponsored by LEAF Capital Funding, LLC.
The deal, LEAF Receivables Funding 7, LLC is a securitization of small ticket equipment loans and leases sponsored by LEAF, a wholly owned subsidiary of LEAF Commercial Capital, Inc. The loans and leases are backed by various equipment including primarily office equipment such as copiers, as well
as technology, telecommunications and industrial equipment.
Moody' rated that class A-2 notes 'Aaa', the class B notes 'Aa2', the class C note 'A2', the class D notes 'Baa2', the class E-1 notes 'Ba1' and the class E-2 notes 'B1'.