Market pundits doubting the efficiency of the German True Sale Initiative need only reference Volkswagen Bank's latest auto-loan securitization, Driver One GmbH. The deal, which priced last week, marked the first time auto paper has broken through the single-digit spreads in the European securitization market.

Sources close to the deal said it was well oversubscribed and increased by 157 million ($209 million) to 1.2 billion during the sales process (see ASR 11/22/04). The triple-A senior tranches priced at six basis points and flat to one-month Euribor, respectively, and the single-A plus tranche priced at 23 basis points over Euribor.

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