P&A Providers & Administrators
MenuMENU
SearchSEARCH

GMAC to Sell $618M of Auto Loan-backed Bonds

October 6, 2010
2 min to read


GMAC Bank, a unit of Ally Financial Inc., plans to sell 446.5 million euros ($618 million) of securities backed by German auto loans in its first public offering of the debt in Europe.


The top-rated bonds will have an expected average life of 1.6 years, three people told The Detroit News. They declined to be identified before the deal is completed. Deutsche Bank AG and Royal Bank of Scotland Group Plc are managing the transaction.

Ad Loading...


The securities will be sold through GMAC E-CARAT 2010, a specially created issuing vehicle. The issue will total 507 million euros and two lower-rated portions may be retained, the people said.


European lenders are increasing sales of asset-backed securities as rewards demanded by investors to buy the debt declines. Banks sold a total 13.1 billion euros of asset-backed bonds in September, mostly linked to mortgages and auto loans, in the busiest month since the second half of 2007, according to JPMorgan Chase & Co.


Investors demand about 80 basis points more than the euro interbank offered rate to buy top-rated bonds backed by European auto loans compared with a spread of 135 basis points at the end of 2009, according to JPMorgan Chase & Co data.


GMAC will meet investors next week before opening books on the deal, the people said. Ally Financial sold $584.9 million of bonds backed by loans in August to finance U.S. auto dealer inventories, a person familiar with the transaction told The Detroit News.

More Industry

Kia Niro SUV in gold color parked outdoors
Industryby Hannah MitchellSeptember 1, 2026

Kia Closes Out Summer With a Bang

Its U.S. subsidiary broke multiple records in August, in part due to a surge of demand for hybrids models.

Read More →
Outside of Auto Park Ford dealership
Industryby Lauren LawrenceSeptember 1, 2026

Indiana Dealership Changes Hands

A 30-year-old Ford dealership in Indiana has a new owner and will soon be undergoing renovations to meet manufacturer requirements.

Read More →
Three men standing in front of two classic cars handing off gift.
Industryby Hannah MitchellAugust 25, 2026

Texas Dealership No Longer in the Family

The Ford store, a longtime cornerstone of the Houston market, is now part of one of the fastest-growing U.S. auto groups.

Read More →
Ad Loading...
Outside of modern car dealership “Genesis of San Bruno
Industryby Lauren LawrenceAugust 25, 2026

Genesis Grows California Presence

The Cardinale Automotive Group opened its third Genesis rooftop in the Golden State, Genesis of San Bruno, a stand-alone dealership serving the San Francisco Bay Area.

Read More →
Red Honda Civic hybrid sedan on two lane road with green hills in background
Industryby Hannah MitchellAugust 21, 2026

August Auto Sales a Mixed Bag

An early forecast shows strong business despite consumer hurdles, and hybrids are a big piece of their affordability coping strategy.

Read More →
EV charger inserted into dark-colored car port
Industryby Hannah MitchellAugust 18, 2026

EV Market Humming Along

July sales show steady growth as the segment stabilizes from last year’s artificial surge following pullback of federal support.

Read More →
Ad Loading...
car in background with hand giving a thumbs up in front
Industryby Lauren LawrenceAugust 14, 2026

Auto Loan Delinquency Rates Stabilize

Auto loans are a main driver of nonmortgage consumer debt, but delinquency rates stabilized in the second quarter across all credit risk tiers.

Read More →
blue sky, yellow and orange rollercoaster with riders going up an incline
Industryby Lauren LawrenceAugust 12, 2026

EV Sales Recover in Q2

The EV sales roller coaster continues as numbers show improvement, but industry experts predict a year-over-year third-quarter decline and fourth-quarter jump.

Read More →
Photo of blue Toyota Prius parked next to body of water with city skyline in background
Industryby Hannah MitchellAugust 5, 2026

The Cheapest Hybrids to Fuel

The powertrain is increasing in popularity, in no small part due to its fuel economy. A new report lists the most efficient hybrids on the market.

Read More →
Ad Loading...
white SUV parked in front of a body of water with a gray sky background
Industryby Lauren LawrenceAugust 5, 2026

Hybrids and SUVs Gaining Ground

The most recent Kelley Blue Book Brand Watch found that only two nonluxury brands increased in shopper consideration, buoyed by their hybrid and SUV offerings.

Read More →