Jan. 9 (Bloomberg) -- Ally Financial Inc. and Banco Santander SA are leading companies marketing $2.85 billion of asset-backed securities in the U.S.
Ally, the Detroit-based auto and home lender majority-owned by the U.S. government, is offering $1.08 billion of bonds backed by auto loans, said a person familiar with the transaction who declined to be identified because terms aren’t set. Banco Santander is marketing $775 million of the debt, a person with knowledge of that transaction said.
Mitsubishi Motors Corp. plans to sell $226 million of bonds backed by car loans as soon as this week as issuance of the debt is poised to dominate sales of asset-backed securities for a fourth consecutive year. SLM, the student lender known as Sallie Mae, may sell $764.7 million of securities backed by education debt, a person with knowledge of that offering said.
Auto-backed debt issuance reached $68 billion last year, while sale of securities tied to student loans was $18 billion, according to data compiled by Bloomberg. Total asset-backed offerings were $158 billion, the data show.
Top-rated securities linked to auto loans are yielding 90 basis points more than similar-maturity Treasuries, compared with 59 basis points on Jan. 7, 2011, according to Bank of America Merrill Lynch index data. Bonds backed by student loans pay a spread of 199 basis points compared with 191 basis points as of Jan. 6, 2011, the data show. A basis point is 0.01 percentage point.
--With assistance from James Holloway in New York. Editors: Dennis Fitzgerald, John Parry
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