Auto ABS

DriveTime is a prolific issuer, but this is the program's second securitization of the year.

The class A-2b tranche can issue floating-rate notes. Should that happen, the YSOA discount rate would step down from 10.30% to 10.05% after the class A-2 notes are paid off.

Moody's had lowered the residual value loss a full percentage point, but did not mention whether it would lower the credit loss expectation.

HART 2023-A has a yield supplement overcollateralization amount (YSOA) of 10.11% as a percentage of the aggregate pool amount of $1.4 billion. It was 10.76% on HART 2022-C.

The latest AESOP includes medium- and heavy-duty trucks, plus different minimum depreciation rates of non-program vehicles (NPVs) to account for their market values.

The company is offering to swap five series of bonds, including its 5.625% unsecured notes due 2025 and 10.25% unsecured notes due 2030 for new secured notes due 2028 that pay 9% in cash or 12% in-kind. The debt will be secured by a second-priority claim on assets including vehicles.

Santander Consumer USA on Wednesday delayed the sale of $942 million of bonds backed by subprime auto loans as the deepening Credit Suisse Group AG crisis added to turmoil in debt markets.

ARI has increased hard credit enhancement compared with previous transactions, however, which helps to the potential risk of offset negative excess spread.

The pending transaction has a class D, unlike the previous transaction, the Santander Drive Auto Receivables Trust, 2023-1, and a higher cumulative net loss expectation.

Subordination levels for classes A, B and C are 38.12%, 20.84%, and 0%, respectively, down from previous levels of 47.63%, 33.68% and 18.18%.