Hyundai to Sell $1.17B of Bonds Backed by Auto Loans
NEW YORK - Hyundai Motor Co. plans to sell $1.17 billion of bonds backed by auto loans, a person familiar with the transaction told Bloomberg. The person declined to be identified because the terms are private.
Banco Santander SA, Spain's biggest bank, plans to offer $700.5 million of similar securities, according to a person familiar with that sale.
Asset-backed bonds linked to consumer loans are benefiting from limited issuance and minimal risk of getting hurt by negative news, Bank of America Merrill Lynch analysts said in an Aug. 13 report. Top-rated asset-backed bonds tied to auto loans yield about 62 basis points more than similar-maturity U.S. Treasuries, compared with 81 basis points on Dec. 31, according to Bank of America Merrill Lynch index data.
“The pace of spending over the past few months has exceeded the level of growth in consumer debt sectors,” according to the New York-based analysts led by Chris Flanagan and Theresa O'Neill. “Charge-offs, tighter underwriting standards, and more conservative behavior by consumers have led to historically low, negative growth in revolving debt.”
Sales of debt tied to consumer and business loans are at $63.8 billion, compared with $115.8 billion during the same time frame last year, according to Bank of America.
More Industry

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 →
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 →
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 →
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 →
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 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 →
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 →
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 →
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 →
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 →