A pool of auto loans extended to prime borrowers will secure about $804 million in asset-backed securities from the World OMNI Auto Lease Securitization Trust 2023-A.
This issuance from the World OMNI Auto Lease Securitization Platform has a more diverse maturity profile than previous deals, according to analysts from FitchRatings. The current deal has a maximum of 54.08% of leases that mature in within 12 months, down from 79.23% for the 2022-A deal. Further, 29% of the leases are scheduled to mature over a six-month period, making the residual value maturity profile lower than previous transactions.
Mitsubishi UFG is the transaction's lead underwriter, Fitch said, with World Omni Financial Corp. acting as sponsor, servicer and administrator.
Some 33,429 leases are in the collateral pool, according to Fitch, and the deal features an aggregate balance of $935.4 million. On a weighted average (WA) basis the borrowers in the collateral pool has a FICO score of 749, original term of 39 months and remaining term of 29 months. All of the vehicles are new, with an undiscounted residual value of $715.1 million, or 76.5%, Fitch said.
Toyota represents the top five vehicle models in the pool, with Tacoma accounting for 21.0%, Highlander next, with 18.2%, RAV4 with 16.2%, Camry with 12.0% and the Tundra with 11.1%, according to the rating agency.
In an era when much of the market remains vigilant for an economic recession, Fitch points out that it is also important to shield the notes from rolling recessions and regional economic downturns with geographic diversity. At least that is the ideal. In reality the entire pool is made up of leases in a five-state area—Florida (63.3%), North Carolina (15.9%), South Carolina (8.2%) Georgia (6.5%) and Alabama (4.1%), the rating agency said.
Fitch said it intends to assign ratings of 'F1+' on the class A-1 notes; 'AAA' on the A-2A through A-4 classes of notes; and 'AA' on the class B notes.
