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How do I find ABS bonds backed by auto loans specifically?

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How do I find ABS bonds backed by auto loans specifically?

Postby byron92 » Fri Jul 27, 2012 5:01 am

I know who the major issuers of auto loan-backed bonds are, but those issuers issue many different types of bonds, right? (Ally Financial, Ford Credit, Santander, etc) How do I find their auto loan (to consumers)-backed bonds, or at least, how do i tell what a bond is backed by?
for instance, how would i find the bonds issued by Ford mentioned in this article -
http://www.bloomberg.com/news/print/2012-07-18/ally-sells-731-million-of-auto-loan-bonds-as-issuance-surges.html
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How do I find ABS bonds backed by auto loans specifically?

Postby baigh » Fri Jul 27, 2012 5:08 am

Try the company websites under investor relations.
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How do I find ABS bonds backed by auto loans specifically?

Postby armin » Fri Jul 27, 2012 5:21 am

ABS are only sold to qualified investors and if you are in the market you would just call the market maker for the issue which you would get from your Bloomberg machine (which usually only qualified investors have).

The "how to tell what a bond is backed by" you read the offering memorandum also available on Bloomberg but possibly also in the Internet.

This is not retail investor stuff. As a retail investor the quality of the collateral only matters to you in getting some broad estimate of how bad the bond is going to be clubbed if it moves toward default. If it goes in default, you are selling.

Edit: Sorry I misjudged you - people come on YA all the time thinking they are going to buy commercial paper, designer derivatives, SLABS, etc... I hear what you are thinking. Trying to find an appropriate discount rate by the securities sold is a project. Even if you had all the information and it was all contemporaneous (it;s not) there is the whole issue of tranching. You would have to find the interest rate that applies to the pool from the interest rate that applies to the tranches - possible but a pain. Obviously there are whole pools and you could just use them. But I agree that you are using an unsecured distressed rate to estimate a secured unknown credit quality rate. Bad plan.
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