Recent increases in auto sales are a harbinger for higher auto ABS issuance in the upcoming months, according to an emailed note this morning from Standard & Poor's.
Year-to-date volume in the sector appears to support this view. S&P analysts said that auto-related ABS issuance is $19 billion thus far in 2012, which is equivalent to an annualized rate of $95 billion.
The firm's full-year projection is for auto-related securitization to hit $80 billion, increasing from last year’s number of $68 billion.
This week alone auto companies Nissan Motor Co., Consumer Portfolio Services, Mercedes-Benz, Avis and Santander Consumer USA have come to market with their respective transactions.
S&P February auto retail sales rose 1.6% month-over-month and 6.9% year-over-year, S&P analysts reported.
They also cited recent figures from Autodata Corp., where automobile manufacturers reported a seasonally adjusted annualized rate or SAAR of 15.1 million units in February. Please see related report published by ASR.