Friday, February 11, 2011

Mercedes-Benz's $750M Bond Is Backed By Auto Leases - Source

NEW YORK (Dow Jones)--Mercedes-Benz Auto Lease Trust is issuing a $750 million asset-backed bond, according to a person familiar with the matter.

The deal, dubbed MBALT 2011-A, will be backed by a pool of closed-end vehicle leases, all of which are new vehicles manufactured by Mercedes-Benz, originated through Mercedes-Benz Financial Services USA LLC, an indirect, wholly owned subsidiary of Daimler AG (DDAIY, DAI.XE).

There had been a small break in the announcement of asset-backed deals as industry participants had been at a conference in Orlando, Fla., until Wednesday, but the expectation is that a steady stream of bonds will now surface.

In the meantime, the commercial mortgage-backed securities market has seen several transactions being marketed.

On Thursday, Morgan Stanley (MS) and Bank of America Merrill Lynch have launched a $1.55 billion commercial mortgage-backed security, which is scheduled to price later Thursday, according to a person familiar with the matter.

The $597.15 million triple-A rated portion of the transaction has launched at 115 basis points over swaps, a benchmark.

J.P. Morgan Chase & Co. (JPM) is working on a $1.5 billion CMBS.

Deutsche Bank AG (DB, DBK.XE) and UBS AG (UBS, UBSN.VX) have priced a $2.2 billion bond.

Separately, Royal Bank of Scotland Group PLC (RBS, RBS.LN) and Wells Fargo & Co. (WFC) are also marketing a $1.3 billion commercial mortgage-backed security.

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