Bloomberg News

Nissan Said to Sell $1.54 Billion of Bonds Backed By Auto Debt

February 15, 2012

Feb. 15 (Bloomberg) -- Nissan Motor Co. sold $1.54 billion of bonds backed by auto loans in the automaker’s largest issue of the debt since 2005, according to a person familiar with the offering.

The sale was increased from $1 billion, said the person, who declined to be identified because terms aren’t public. A top-ranked portion maturing in 2.3 years yields 15 basis points more than the benchmark swap rate.

Automakers are boosting asset-backed sales as investor seeks bonds tied to vehicle lending. Honda Motor Co. yesterday increased its sale of securities backed loans by $440 million to $1.69 billion in its largest offering since 2009. Ford Motor Co. last week sold $2.3 billion of so-called floor-plan debt, tied to inventory loans to dealers, in its largest offering of the securities since 2005, according to data compiled by Bloomberg. The issue was increased from $1 billion.

Bond offerings connected to automobile sales are dominating asset-backed sales this year. Deals linked to car and truck sales accounted for $10 billion of the $18 billion in 2012 asset-backed issuance prior to this week’s sales, according to data compiled by Bloomberg. Sales of the securities may jump 11 percent to about $63 billion this year, accounting for about 55 percent of bonds tied to consumer borrowing, according to Wells Fargo Securities LLC estimates.

Nissan sold $1.54 billion of asset-backed securities linked to auto loans in January 2005, Bloomberg data show.

The extra yield investors demand to own top-ranked bonds backed by auto loans instead of Treasuries has declined 26 basis points this year to 69 basis points and last week reached 67, the lowest since Aug. 1, according to a Bank of America Merrill Lynch index. A basis point is 0.01 percentage point.

--Editors: Mitchell Martin, Alan Goldstein

To contact the reporter on this story: Sarah Mulholland in New York at

To contact the editor responsible for this story: Alan Goldstein at

Toyota's Hydrogen Man
blog comments powered by Disqus