NEW YORK-(Dow Jones)- Ford Credit Auto Owner Trust's $1.137 billion bond backed by auto loans has launched and is expected to price later Tuesday, according to a person familiar with the matter.
The bond, dubbed FORDO 2011-A, is joint led by Citigroup, Barclays Capital and J.P. Morgan.
The largest triple-A-rated tranche with a duration of 1.98 years and valued at $335.3 million launched at 17 basis points over Eurodollar synthetic forward, or EDSF, a benchmark. Guidance was in the range of 20 to 25 basis points over EDSF.
Price guidance is also out on AmeriCredit Auto Receivables Trust's $800 million bond, according to a person familiar with the matter.
The bond is scheduled to price later this week and is joint led by Credit Suisse, Barclays Capital and Wells Fargo.
Guidance on the largest tranche, valued at $255 million, is in the area of 40 basis points over EDSF.
The auto sector of the asset-backed bond market has been the most active in recent years and comprised 60% of all issuance in 2010. This year also, it seems this sector will see the bulk of new deals as investors are comfortable with the performance of these bonds.
Last week, Hyundai Auto Receivables Trust priced its $920.78 million bond. The largest tranche of the deal, valued at $263 million, sold at 20 basis points over EDSF. Also, GE Capital Credit Card Master Trust's bond was increased in size to $600 million from an original $500 million, showing healthy appetite for such bonds.
Other bonds in the market include Santander Consumer Acquired Receivables Trust's $797 million bond.
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