Weekly Wrap: Toyota returns to auto-lease securitization after ‘long hiatus’
Deals, trends and research in structured finance and asset-backed securities for the week of April 2-8
By
Glen Fest
Auto leasing
Tesla launches largest-ever lease ABS on heels of first profitable year
The $1.18 billion deal is also the first to include Tesla’s mid-range Model Y vehicle (with an MSRP of $54, 119) that makes up 36% of the securitized value of the TALT 2021-A pool, according to a presale report from Moody’s Investors Service.
By
Glen Fest
Santander bulks up long-term auto-lease concentration in $1.25B deal
Almost 54% of the leases issued through Santander Consumer's Chrysler Capital unit are for terms beyond 36 months, the highest-ever share of extended-term contracts.
By
Glen Fest
Ford, Mercedes-Benz sponsoring next auto-lease ABS deals
The two deals will add to the pipeline of 2021 prime auto-lease transactions led earlier this month by Hyundai Capital America.
By
Glen Fest
Hyundai Capital rolls out its largest auto-lease ABS to date
The notes offering is the largest among the 21 auto-lease deals HCA has issued since 2011, and the fourth that has topped $1 billion in offered notes.
By
Glen Fest
Moody’s upgrades GM, Toyota lease ABS deals
The agency cited improving used-car prices that have elevated resale values of off-lease vehicles that drivers are turning back into dealerships.
By
Glen Fest
Mercedes-Benz Financial Services prices $1.01B prime auto-lease ABS
The captive-finance lender for U.S. Mercedes-Benz deals closed on its second transaction of the year, and the first auto-lease ABS to price since July.
By
Glen Fest
Ford ramps up investor protections in forthcoming $1.4B lease ABS
One of the risk factors was lower expected values that Moody's and S&P applied for vehicles at the end of the contract period, in comparison to prior Ford vehicle-lease securitizations.
By
Glen Fest
GMF projects lower vehicle resale values in next $1.26B auto lease ABS
The captive-finance lender for General Motors is providing lower expectations for the vehicles' future residual values, compared to its prior lease ABS deals, in recognition of the likely severe recessionary impact of the coronavirus outbreak.
By
Glen Fest
Santander launches $1B Chrysler auto-lease ABS
The lease deal – Santander’s sixth ABS of Chrysler Capital leases since 2017 – has a higher proportion of leases with original terms longer than 36 months (44.5%) than prior deals through the platform.
By
Glen Fest
Toyota lenders adding $2B-$2.7B in loan and lease deals to ABS pipeline
Toyota Motor Credit Co. is sponsoring a $1.25 billion loan-backed transaction (potentially upsized to $1.75 billion), while regional Toyota captive finance lender World Omni Finance Corp. is sponsoring an auto-lease deal at either $766.5 million or $962.9 million.
By
Glen Fest
Automakers continue early-year deluge of lease-backed ABS
Mercedes-Benz, Nissan and Ford will market up to $3.86 billion in new prime auto-lease securitizations, adding to a pipeline that opened up with Hyundai's deal last week.
By
Glen Fest
Hyundai increases share of extended terms in $896M lease ABS
Hyundai Auto Lease Securitization 2020-A will have a collateral pool with more than a quarter of underlying leases exceeding 43 months – compared to just 19.4% in its previous lease ABS transaction that priced last August.
By
Glen Fest
Tesla returns with $1B auto-lease ABS notes offering
Tesla’s sponsorship of the $940.95 million Tesla Auto Lease Trust 2019-A comes as the battery-electric vehicle (BEV) manufacturer has regained its footing with a surprise third-quarter profit and overcome recent manufacturing woes on its mass-market Model 3 vehicle.
Mercedes-Benz limits maturity concentrations in new U.S. auto-lease ABS offering
According to presale reports, Mercedes-Benz Auto Lease Trust (MBALT) 2019-B will have only two months over the life of the deal in which there is more than a 5% concentration of expected lease maturities.
By
Glen Fest
Collateral quality dips for new RAC King subprime auto lease ABS
Loss expectations are up slightly for the second retail auto lease securitization of the year for RAC King the parent company of the regional “buy here/pay here” used-car chain American Car Center.
By
Glen Fest
Volkswagen revives U.S. lease ABS platform, sans diesel autos
In the pool of 46,070 vehicles in the $1 billion pool or 59,863 in the $1.3 billion pool, none are equipped with diesel engines that were at the center of Volkswagen’s worldwide emissions scandal in 2015.
By
Glen Fest
World Omni concentrates maturity wall in next prime auto lease ABS
Regional Toyota captive finance lender World Omni has its highest-ever average FICO for a securitization of prime auto-lease receivables. But it also is pooling a portfolio of contracts that have a highly concentrated mix of lease maturities.
By
Glen Fest
Ford more exposed to longer-term contracts in $1.1B lease ABS
The $1.11 billion Ford Credit Auto Lease Trust (FCALT) 2019-B has 20.2% of the securitization value tied to leases with terms over 36 months – up from 14.4% in FCALT 2019-A. It's the largest percentage for a Ford lease ABS deal since 2014.
By
Glen Fest
Nissan mulls another upsizing in next $1B U.S. auto lease securitization
For the first time, the captive-finance lender has also opted to add SOFR-based benchmark rate "fallback" plans into one of its deals, which would stand in for one-month Libor should the London interbank offered rate becomes unavailable in 2021.
By
Glen Fest
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