Consumer ABS Market Update

Monthly Commentary

May 03, 2016

New Issue

$14bn in Consumer ABS priced over the month, bringing year to date issuance to $53bn, down 30% year over year from 2015.
Some deals that priced over the month include:

On Deck priced a small business loan securitization with the 2.28-year BBB rated class at S + 325 bps.
  • Napier Park issued a $260mm deal backed by railcar leases with the 5- and 10-year single A classes pricing at 4.2% (S+~284) and 5.5% (S + ~374)respectively.
  • Avant priced a $300mm unsecured consumer loan transaction with the 0.56-year A- rated note pricing at e+ 325.
  • Sonic priced a $575mm whole business securitization with the 6.8-year BBB rated tranche pricing at S + 315. This deal priced through initial guidance and was over 2x times oversubscribed.
  • Westgate priced a $200mm timeshare deal with the 2.1-year A rated class at 3.6% (s+~265) and the 2.1-year BBB rated class at 4.75% (s+~380).
  • CommonBond issued a $153mm deal backed by refinanced private student loans. The 4.2-year BBB rated B class priced at N + 395.
  • Navient priced its 2nd FFELP student loan securitization of the year. The $500mm deal was oversubscribed and priced through initial guidance. The AAA rated A-1 (1.25-year), A-2 (3.78-year) and A-3 (8.3-year) notes priced at L + 75, L + 105 and L + 150 respectively.
  • Tiering within the subprime auto space was evident as DriveTime Auto priced a $300mm subprime auto deal with the 3.4-year BBB rated class pricing at S + 450 vs. GM which priced a $1.2bn subprime auto deal with the 3.9-year BBB class pricing at S + 265 the day prior.


  • Spreads tightened over the month across most sub-sectors as demand outstripped supply. Many sectors retraced 50-75% of the spread widening that occurred over the first quarter.
- AAA credit card and auto ABS tightened 5-10 bps over the month.
- FFELP Student loans tightened ~5-10 bps and private loans tightened ~10-20 bps over the month.
- Senior paper backed by unsecured personal loans tightened ~20 bps.
- Other specialized ABS tightened 10-20 bps over the month.

Consumer News

  • U.S. light vehicle SAAR for March was 16.57 units, down 5% from February as many automakers posted sales that missed estimates.
  • Navient extended legal final maturities on $1.2bn FFELP bonds over 4 securitizations. Thus far, Navient has extended the legal final maturity dates on $4.8bn of its FFELP ABS bonds.



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