Navistar joins other issuers to offer $919 mln ABS

By Nancy Leinfuss

NEW YORK, May 19 (BestGrowthStock) – Navistar Financial Owner Trust
is selling $919 million of asset-backed securities supported by
vehicle loans, market sources said on Wednesday, bringing ABS
deals offered to investorss to $3.5 billion this week.

The deal, marketed by Credit Suisse, Deutsche Bank
Securities, JPMorgan Securities and RBC, is backed by retail
truck, bus and trailer loans, market sources said.

Navistar’s sale, dubbed “NAVOT 2010-A,” includes $326
million of a P1-rated 0.31-year note issue, $262 million of
AAA-rated one-year notes, $217.9 million of AAA-rated 1.89-year
notes, $75.2 million of A-rated 2.74-year notes and $38.1
million of BBB-rated 2.89-year notes, sources said.

High investor demand for ABS securities has lured several
other issuers to the market with sales this week as keen buyer
interest allows issuers to reduce their funding costs.

Among other sales marketed to investors is Santander Drive
Auto Receivables Trust’s $1 billion of auto ABS securities
through Credit Suisse, Wells Fargo Securities and Santander.

In addition, another $750 million of auto-lease securities
is being sold by Nissan Auto Lease Trust by underwriters
JPMorgan Securities, Citigroup and Deutsche Bank Securities,
market sources said.

The auto segment continues to drive the bulk of this year’s
ABS supply, comprising nearly half of the $50 billion of deals
sold to investors.

Investment Basics

(Editing by Chizu Nomiyama)

Navistar joins other issuers to offer $919 mln ABS