World Omni and Fifth Third priced nearly $2 billion of securities backed by auto loans on Wednesday.

World Omni Financial sold $988 million of bonds backed by prime auto loans from its World Omni Auto Receivables Trust (WOART) 2014-B.

The issuer sold the 1-year, fixed rate, ‘AAA’ notes at a spread of 27 basis points over the Eurodollar synthetic forward curve and the floating rate 1-year, ‘AAA’ notes at 23 basis points over one month Libor. 

The 2.66-year, ‘AAA’ rated notes sold at 27 basis points over interpolated swaps and the 4-year, ‘AAA’ rated notes priced at 35 basis points over interpolated swaps.

The deal also included an ‘AA’ rated tranche that priced at 60 basis points over interpolated swaps. Fitch Ratings assigned ratings to the deal.

Cars and light duty trucks manufactured by Toyota and originated by World Omni secure all of the loans backing the deal.

According to Fitch, the deal has a high percentage of loans with original terms greater than 60 months, 74.3%. That’s the highest ever to date in a WOART pool.

“Extended-term loans have historically produced higher loss rates,” the report states. “However, the borrowers within this longer-term range have strong obligor FICO scores.” Fitch accounted for this risk in its determination of the loss proxy.

Fifth Third also increased the share of longer-term loans in the underlying pool of its latest auto loan securitization, Fifth Third Auto Trust 2014-3.  Over 77% of the pool consists of loans with maturities beyond five years, compared to 73% in the 2014-2 series and 71% in the 2014-1 series.

The issuer sold $1 billion of securities backed by prime auto loans. The short-dated, one-year, ‘AAA’ fixed and floating rate notes priced at the same levels as the World Omni deal, at 27 basis points over the Eurodollar synthetic forward and 23 basis points over one month Libor.

The longer dated, 2.18-year, ‘AAA’ notes were sold at 27 basis points over interpolated swaps and the 3.31-year, ‘AAA’ notes priced at 37 basis points over interpolated swaps. Fitch rated the deal.

Barclays, Credit Suisse, Deutsche Bank and Wells Fargo Securities are the lead underwriters on the deal.

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