Two student loan ABS transactions are currently in the market with a deal from the Iowa Student Loan Liquidity Corp., which is issuing its Series 2012-1 offering.
The FFELP-backed transaction is underwritten by Morgan Stanley. Standard & Poor’s and Fitch Ratings have assigned the transaction’s Class A worth $521 million preliminary ratings of ‘AA+ (sf)’ and 'AAAsf’, respectively. The Class B worth $10 million is not rated.
North Texas Higher Education Authority is also in the market with Student Loan Backed Bonds, Series 2012-1. The FFELP deal, which is underwritten by Bank of America Merrill Lynch, is worth $463.2 million.
S&P and Fitch also rated the deal ‘AAAsf’ and ‘AA+ (sf)’, respectively.
Pennsylvania Higher Education Assistance Agency is the backup servicer while Wells Fargo Bank is serving as the offering's trustee and backup administrator.
Credit enhancement for the bonds will include overcollateralization and cash deposit in the Reserve Fund and the Collection Fund.
On the auto front, DriveTime has a $250 144A transaction that might price next week with lead managers Wells Fargo Securities, Deutsche Bank Securities and Royal Bank of Scotland, according to Bloomberg.