Bloomberg just came up with another interesting report about the BMW world. It seems that BMW AG, among other companies such as Nissan Motor Co., and AmeriCredit Corp, is selling asset-backed securities tied to U.S. consumer debt. An asset-backed security is secured by loans or by money owed to a company for merchandise or services purchased on credit.
According to the report, BMW is issuing $750 million of ssecurities backed by consumer payments tied to car leases, while Nissan is selling $1 billion of securities backed by consumer payments on car loans, and AmeriCredit plans to sell $700 million of bonds backed by auto loan payments.
Bloomberg previously reported that the Bavarian premium automaker has sold 742 million euros of bonds backed by German auto leases, at the beginning of this year.
According to a report issued by Wells Fargo Securities, the asset-backed market may not reach $100 billion in issuance in 2010 in US, 26% less compared to 2009, when it reached $135 billion.
Data compiled by Bloomberg indicates that car loans have the highest quota in bond sales tied to consumer debt this year, accounting for $43 billion of the $64 billion marketed.[Source: Bloomberg via BusinessWeek]