By Anusha Shrivastava
Of DOW JONES NEWSWIRES
NEW YORK-(Dow Jones)- The $2.027 billion Bank of America Auto Trust deal, eligible for a Federal Reserve program, has sold, according to a person familiar with the deal.
The self-led deal, dubbed BAAT 2009-3, sold a day ahead of the next loan application deadline for the central bank's Term Asset-Backed Securities Loan Facility, or TALF.
The largest triple-A rated tranche of the auto sector deal, worth $723 million, sold at 38 basis points over a short-term futures benchmark.
This deal is the largest among the $6 billion in consumer loan-backed deals to be sold ahead of the TALF deadline. The program is credited with rejuvenating the securitization market as the Fed offers cheap loans to investors to buy newly created consumer-loan-backed deals. The program also covers new and existing commercial mortgage bonds.
Price talk is out on CNH's $800 million deal that is eligible for funding under TALF. On the largest triple-A rated tranche of $201 million, it is in the low 80 basis point range over a benchmark. The equipment sector deal, dubbed CNH 09-C, is likely to price later Monday.
Americredit's $227 million bond sold on Monday, with the largest triple-A rated tranche sold at 80 basis points over a benchmark.
Other deals being sold this week include an auto sector deal from GMAC's Ally Bank with a $884.856 million bond.
Equipment sector deals include a $654 million deal from General Electric Small Ticket and a $350 million deal from Navistar International Corp. (NAV).
Several non-TALF deals are also in the market: a $1.04 billion deal from World Omni, a $591 million bond from CarMax and a $545.9 million deal from Entergy Texas Restoration Funding LLC.
Year-to-date issuance of asset-backed securities stands at $122.5 billion, according to a note from Deutsche Bank. Last year, that figure was $156.8 billion.
Auto sector issuance comprises the bulk of this year's deals - at $53.19 billion or 43.4%. Credit card sector deals are at $41.56 billion or 33.9%.
-By Anusha Shrivastava, Dow Jones Newswires; 212-416-2227; anusha.shrivastava@dowjones.com