Nissan Motor Acceptance Corp. has a $750 million auto lease securitization in the pipeline. The deal is expected to price on Wednesday.
The new auto deal, Nissan Auto Lease Trust 2010-B, is offering three triple-A, fixed rate tranches as part of the capital structure. The top AI tranche is worth $112 million.
The Class A2 notes are offered with 1.2-year average life maturity, the Class A3 notes have a two-year average life maturity and the A4 notes are offered with 2.52-year average life maturity.
Citigroup Global Markets, Societe Generale and JPMorgan Securities are the lead managers on the deal.
The latest deal is will form part of what is expected to be a busy month for the auto sector. Wells Fargo analysts said November is likely to be an active month for new issuance in the auto ABS sector.
So far this year, new issue auto ABS for 2010 stood at $41.8 billion as of Oct. 31 and accounted for 48% of total issuance. Issuance is likely to remain on track to reach approximately $50 billion for the full year. This amount compares to the year-to-date total for 2009 of $43.6 billion.
Wells Fargo said that triple-A prime auto ABS spreads have widened eight basis points to 12 basis points and are retracing the tightening seen over the summer. Spreads on subordinated bonds have remained more stable than the triple-A classes, with single-A bonds just five basis points wider and triple-A bonds unchanged. Subprime triple-A bonds performed somewhat better, with spreads flat to five basis points wider over the same period.
"The spread widening is probably related to a number of factors, including investors’ reluctance to add new consumer ABS at this time based on the low absolute level of interest rates and an eye toward doing less trading as year-end approaches," Wells Fargo analysts said.
For further preliminary information about the Nissan deal, please click the link below from the ASR Scorecard database.