Auto-maker BMW has increased the size of its asset-backed bond to $1 billion from an original $750 million and has launched it, according to a person familiar with the matter.

The largest tranche, valued at $363 million, has launched at 25 basis points over Eurodollar Synthetic Forward, a benchmark. Guidance was in the area of 30 basis points over EDSF.

The $350 million tranche, launched at 15 basis points over the same benchmark. Guidance was in the range of 20 to 25 basis points over the same benchmark.

The bond, led by Citigroup Inc. (C) and J.P. Morgan Chase & Co. (JPM), is scheduled to price on Wednesday.

In the meantime, AmeriCredit Auto Receivables Trust's bond has also been increased in size to $850 million, up from an original $700 million bond, according to a person familiar with the matter.

Joint lead managers on the bond, dubbed AMCAR 2010-3 and scheduled to price later this week, are Barclays Capital, UBS AG (UBS) and Wells Fargo & Co. (WFC).

Price guidance is also out: the largest tranche valued at $281 million, has guidance in the range of 37 to 40 basis points over Eurodollar Synthetic Forward, a benchmark.

All six tranches of the bond are "subject", indicating investors have already said they will buy the bond. This is a sign of strong demand, as is the fact the bond was increased in size.

DriveTime Auto is tapping the market with a $228 million bond backed by subprime auto loans. Joint leads managers are Deutsche Bank AG (DB), Royal Bank of Scotland Group PLC (RBS) and UBS. The bond will price this week.

The asset-backed market has seen a spurt of issuance after a three-week pause. Other issuers include Nissan Motor Co.(NSANY, 7201.TO) with a $1 billion bond, Discover Credit Card with a $600 million security and All Student Loan Group with a $458.32 million student loan-backed bond.

-By Anusha Shrivastava, Dow Jones Newswires; 212-416-2227; anusha.shrivastava@dowjones.com
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