Prime auto ABS

VW Credit is also adding more Audi-brand vehicles to VALET 2018-2 compared to its earlier 2018 transaction that renewed a long-dormant ABS shelf.

S&P considers the $1.034 billion lease securitization among the "most diversified" in lease-end concentrations, limiting the impact of future declines in residual values as cars come off lease.

Toyota Motor Credit Co.'s fourth prime auto loan securitization of the year boosts its volume beyond $6 billion.

Even with advanced seasoning and lighter risk load, the bank's first auto-loan securitization of the year has much higher CE than a weaker 2017 pool.

Higher-cost loans, less seasoning and rising APRs have pushed average loan balances beyond $28K.

The transaction's note size is to be determined, but is backed by €750M in lease-backed receivables, compared to €1.5 billion in VW's most recent German lease ABS in May.

Over three-quarters of loans in the €861.3 million transaction are loans in which borrowers are scheduled to repay almost half the principal in its final installment.

The captive-finance lenders will be the leading issuers of U.S. auto lease-backed securitizations in 2017 at the close of their latest deals launched this week.

More than 88% of contracts in the $800 million transaction have terms of less than 40 months; Fitch points to the increased the use of subvention at Toyota dealerships.

Jeff Weinstein and Patrick Lampe join from the Chicago office of Sidley Austin; Morgan Lewis partner Philip Russell is relocating from the firm’s New York office.