Issuers Ford Motor Credit Co. and Nissan Motor Acceptance Corp. are jumping on the Term ABS Loan Facility (TALF) bandwagon by coming to market with TALF-eligible auto transactions. Both deals are scheduled to price today.
The spurt of auto TALF-eligible issuance confirms initial market expectations that the government program would probably play the biggest role in this sector compared with other consumer assets such credit cards and student loans.
This is because student loan and credit card issuers have existing sources of funding that might work better for them.
For instance, credit card issuers can fund more cheaply via deposits and the Federal Deposit Insurance Corp.s Temporary Liquidity Guarantee Program or TLGP. In the same vein, student loan lenders can continue to access Department of Education funding.
Additionally, Huntington National Bank is also coming to market with an auto ABS deal via Barclays Capital.
Preliminary details on all three transactions (from the ASR Scorecard database) are featured in the scorecards below. To view the transactions, please click on the following link: