Asset-Backed Bond Issuance in 2014 Set to Surpass $100 Billion

U.S. issuers have sold almost $100 billion of asset-backed bonds linked to everything from subprime auto loans to credit-card debt this year, and deals planned as soon as today are poised to take the total past that milestone.

Issuance of $99.6 billion compares with $89.2 billion priced through June 11 last year, according to data compiled by Bloomberg. Banco Santander SA (SAN)’s U.S. consumer unit is set to sell $1 billion of securities tied to subprime auto loans, according to a person with knowledge of the offering who asked not to be identified citing lack of authorization to speak publicly about the matter.

Auto debt makes up the largest portion of asset-backed bond offerings. Companies issued $37.8 billion of the debt through May 30, up 15 percent from last year, Wells Fargo analysts led by John McElravey said in a May 30 report.

To contact the reporter on this story: Sarah Mulholland in New York at smulholland3@bloomberg.net

To contact the editors responsible for this story: Shannon D. Harrington at sharrington6@bloomberg.net Mitchell Martin, Chapin Wright

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