Ford Motor (NYSE:F)
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3 Anos : February 2009 para February 2012
Ford Motor Co.'s (F) auto loan-backed deal has sold, according to a person familiar with the matter.
The deal was increased in size to $1.58 billion. Dubbed FORDO 09-E, it was originally $1.027 billion. The largest triple-A rated tranche of the Ford deal was worth $602 million and sold at 45 basis points over a benchmark, in line with guidance.
Ford's bond isn't eligible for funding under the Federal Reserve's Term Asset-Backed Securities Loan Facility program to boost the securitization market.
Also, CenterPoint Energy Restoration Bond Co. LLC's $664.86 million deal launched, according to a person familiar with the matter.
The deal, which also isn't eligible for funding under the Fed's program, is backed by rate-reduction bonds. A rate-reduction bond is the securitization of a cashflow stream generated by a fee charged to utility consumers.
Several issuers, like Chrysler Financial Auto and SLM Corp. (SLM), better known as Sallie Mae, are issuing bonds outside of the purview of TALF. These issuers are actively avoiding the program by coming to market with their issues well ahead of the monthly loan application deadline. Earlier in the year, they had relied on the program to draw investors to buy their bonds.
Issuers and investors are once again able to operate without the Fed's direct help because risk premiums, or spreads, on these deals have tightened as the market has stabilized.
Ford was one of the inaugural issuers with the TALF program in March, when it was first launched. Most recently, in October, the company sold a $1.5 billion dealer floorplan-backed deal that could be bought using TALF funds.
On Tuesday, Chrysler offered an $891 million auto loan-backed deal. In July, it sold a $1.02 billion deal that was eligible to be acquired with low-cost loans and guarantees made available under TALF.
Sallie Mae sold its $839 million non-TALF, student loan-backed deal on Tuesday. World Omni Financial Corp. this month raised $1.04 billion for an auto loan-backed deal without having to tap the TALF program. In April, it had been one of the issuers to take advantage of the TALF program, raising $750 million.
USAA Auto Owner Trust sold a $1 billion non-TALF bond on Nov. 5, two days after the loan-application deadline for November, and CarMax and Entergy Texas Restoration Funding LLC have also recently raised money without the Fed's help.
The next deadline for the consumer-loan-backed portion of TALF is Dec. 3.
The spike in issuance this week is partially because the holiday season is traditionally slow, said Dan Nigro, a portfolio manager at Dynamic Credit Partners in New York.
"The sidewalks will get rolled up soon," he said, noting those who have had a good year want to wrap up their books now.
The Fed has supported the securitization market through TALF. Total issuance this year stands at $131.41 billion, according to a note from Deutsche Bank. Of this, more than $90 billion has been eligible for TALF funds.
Auto loan-backed deals comprise the bulk of issuance so far this year at $55.41 billion, or 42.2%, the Deutsche Bank note says. Credit card loan-backed deals are at $41.56 billion, or 31.6% of total issuance. Student loan-backed deals are a distant third at $15.85 billion, or 12.1%.
-By Anusha Shrivastava, Dow Jones Newswires; 212-416-2227; anusha.shrivastava@dowjones.com