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The first auto dealer floorplan asset-backed securities deal hit the European market this spring and market players say they expect a diverse array of esoteric ABS to follow.
Prashanth Satyadeva
The first auto dealer floorplan asset-backed securities deal hit the European market this spring and market players say they expect a diverse array of esoteric ABS to follow. Edward Hickman, partner at SNR Denton, said many corporations that have used traditional bank credit facilities in the past might now turn to the securitization market to find funding. He cited aircraft financing, whole business securitizations, non-recourse project bonds and rental car receivables as types of esoteric transactions that could soon become more common offerings. "We're seeing lots of different transactions without homogeneity between the deals," noted Hickman, a panelist for today's discussion on Esoteric ABS and Emerging Assets Classes. The panel will be moderated by Prashanth Satyadeva, partner at Berwin Leighton Paisner.
Deutsche Bank priced the groundbreaking auto dealer floorplan ABS on April 12. The EMOT 2012-1 transaction is backed by loans made by auto finance company GMAC to dealerships in France and Germany, with 600 obligors making up the loan pool. The loans finance the...