Three new auto-related deals are adding to what already accounts for the bulk of this year's ABS issuance.
Consumer Portfolio Services (CPS) is lining up a $141.5 million auto securitization deal, CPS Auto Receivables Trust 2012-B. This is the second senior/subordinated transaction of the year for the issuer.
Moody's Investors Service rated the class A notes to 'A2', the class B notes 'Baa3'; the class C notes 'Ba3' and the class D notes 'B2'.
Also in the market this week is an $801mn auto lease securitization sponsored by Hyundai Motor Co. The deal, Hyundai Auto Lease Securitization Trust 2012-A, will also be rated by Moody's, which has assigned the class A-2, A-3 and A-4 notes a 'Aaa' rating. The deal is backed by a pool of closed-end retail automobile lease contracts and related new Hyundai and Kia motor vehicles, according to Moody's presale report.
A third deal making the rounds, the $1.0 billion Volkswagen Auto Lease Trust (VALT) 2012-A, will b rated by Fitch Ratings. The notes will ultimately be backed by payments on a pool of closed-end vehicle leases on new Volkswagen and Audi brand vehicles manufactured by Volkswagen Group (VW). All the leases were originated through Volkswagen Credit, Inc. (VCI), which will act as servicer. The class A-2, A-3 and A-4 tranches will be rated 'AAA'.
The latest offerings add to what analysts at Bank of America Merrill Lynch estimated in a report published today has been nearly $47 billion in auto-related ABS. The report says this has been the dominant sector among the nearly $87 billion of total ABS issuance year to date.