Non-Term ABS Loan Facility (TALF) deals have surfaced in the ABS market, serving as evidence that there is demand for the product away from the Federal Reserve program.
This week two student and a couple of auto ABS issuers have brought their deals to the securitization market. Ceterpoint Energy Houston Electric also announced its transaction on Monday afternoon.
These companies have chosen to stay out of the TALF queue in the beginning of the month when a proliferation of securitzation offerings come to market almost all at the same time.
CenterPoint Energy announced its three-tranched deal yesterday afternoon that is backed by system restoration property. Moody's Investors Service, Fitch Ratings and Standard & Poor's have rated all three tranches triple-A. Centerpoint's ABS is led managed by Citigroup Global Markets and Goldman Sachs.
Meanwhile, despite the auto sector's dominance in TALF-related activity, two issuers have come out with two transactions not eligible under the program.
Ford Motor Co. is in the market with a $1.027 billion auto loan ABS called FORD Auto Owner Trust 2009-E or FORDO 2009-E. Lead managers on the auto ABS are Barclays Capital, JPMorgan Securities and Morgan Stanley. The four-tranche offering, three of which are rated in the triple-A rating category, is set to price tomorrow.
Chrysler Financial, which priced a $1.02 billion TALF-eligible deal in July, is currently in the market with a $891 million non-TALF transaction backed by automobile loans.
Meanwhile, the student loan sector is also seeing some activity. SLM Corp., more popularly known as Sallie Mae, has a $839 million student loan deal. The lender also priced TALF-eligible transactions in the May and July TALF subscription dates.
Fitch Ratings this afternoon released a presale on Brazos Student Finance Corp. Series 2009-1. The two-tranche deal is divided between a $356,700,000 class A and a $80,400,000 class B.
Fitch said that the notes are issued in accordance wtih a debt exchange offer for the 2004-A notes. The actual size of series 2009-1 is dependent on the amount of the 2004-A notes accepted for exchange, according to the rating agency.
Preliminary details on Ford's and Centerpoint's deals are available via the link below from the ASR Scorecard database.