Toyota Motor Credit is marketing another $1.25 billion of bonds backed by retail auto loans.

Toyota Auto Receivables 2016-D Owner Trust TAOT 2016-D is the sponsor’s fourth auto loan securitization to be issued under their Regulation AB II compliant retail shelf, according to Standard & Poor’s. The trust will  issue a $341 million money market tranche and three senior term tranches initially rated ‘AAA.’ Total credit enhancement for all four tranches is  2.75%.

J.P. Morgan Securities is the lead underwriter.

The overall credit quality of collateral is that of Toyota’s previous transaction, according to S&P.  Approximately 78% of the obligors by balance have FICO scores greater than 700. While 30.8% of the pool's loans by principal balance have original terms of 61-72 months, only 13.8% have remaining terms of that duration due to seasoning. The collateral pool includes no loans with original maturity terms greater than 72 months or borrowers with FICO scores below 620.

S&P’s expected loss range for the series 2016-D pool is 0.55%-0.65%, unchanged from the series 2016-C pool. 

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