By Anusha Shrivastava
Of DOW JONES NEWSWIRES
NEW YORK -(Dow Jones)- World Omni Financial Corp.'s $1.04 billion deal has sold, according to a term sheet.
The auto sector deal, dubbed WOLS 2009-A, is not eligible for funding under the Federal Reserve's Term Asset-Backed Securities Loan Facility, or TALF, program.
The bond has three triple-A rated tranches. The largest of these, worth $378.78 million, sold at 40 basis points over a short-term futures benchmark.
Joint leads on the deal are Bank of America/Merrill Lynch and Wells Fargo.
In April, World Omni had sold a $750 million auto sector deal that was eligible for TALF funding. The largest tranche of that deal sold at 185 basis points over the short-term futures benchmark.
Risk premiums have tightened considerably since the launch of the TALF program in March.
The program has rejuvenated the securitization market, essential for the flow of credit as it lowers the cost of borrowing for consumers.
Tuesday is this month's loan application deadline for the consumer loan-backed portion of the TALF program, which also covers new and existing commercial mortgage bonds.
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.
The bulk of issuance this year, about $86 billion, is TALF-eligible.
-By Anusha Shrivastava, Dow Jones Newswires; 212-416-2227; anusha.shrivastava@dowjones.com