A-Mark, a precious metals trading company based in El Segundo, Calif., is turning to the securitization market in order to boost margin lending to its clients.
The company is selling $100 million of bonds backed by a revolving pool of loans secured by precious metals as well as some of its own inventory of cash and gold, silver, platinum, and palladium.
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Sales of older vehicles are on the rise and prices are headed back up, so there's more collateral available and it is also performing better.
The transaction was launched in early June, just as concerns about a trade war were starting to take a toll on commodities prices.
Ford Motor Credit's second master trust issuance funding its dealer inventory financing has pushed floorplan ABS industry-wide past $8.5 billion, the busiest year for the asset class since 2014.
