PHH Corp. is in the market with a $450 million auto lease-backed securitization called Chesapeake Funding LLC, Series 2013-1 – its debut deal for 2013.
The deal has been assigned preliminary ratings by Moody's Investors Service. Moody;s has assigned ratings of ‘Aaa’, ‘Aa2’, ‘A2’, and ‘Baa2’ to the class A, class B, class C, and class D notes, respectively,
This deal has a slightly different capital structure than the previous transaction, Series 2012-2 which was issued last October. According to Moody’s, the overcollateralization for the current deal is higher (2.56% vs. 1.45%) while the reserve account is smaller (1.22% vs. 2.38%).
However, the overall hard enhancements for the notes are similar; the previous transaction (class A 11.04% vs. 11.12%; class B 7.87% vs. 7.89%; class C 5.26% vs. 5.29%; class D 3.78% vs. 3.83%).
The notes are backed by leases that were originated in the name of D L Peterson Trust by PHH Vehicle Management Services.