(Updates with details on GE Small Ticket launch)
By Anusha Shrivastava
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)
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 expected to price ahead of the TALF deadline.
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 $884.86 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).
The GE Small Ticket deal was launched Monday afternoon, with the top-tier class at a spread of Libor minus one basis point, according to sources close to the deal. The TALF-eligible deal is expected to price Tuesday. Barclays and Bank Of America Securities are the leads on the deal.
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