Auto Revival Sways Traders in Surging Bond Sales: Credit Markets
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Automakers are selling bonds linked to vehicle debt at the fastest pace since at least 2008 as soaring investor demand sends relative yields on the notes to the lowest level in more than six months.
Issuance of auto asset-backed securities has reached $14.8 billion this year, compared with a range of $7 billion to $9 billion in the comparable periods of 2008 to 2011, according to data from Barclays Capital. Nissan Motor Co., Honda Motor Co. and Ford Motor Co. sold $5.5 billion of bonds this month, boosting the offerings by at least 35 percent, in their biggest deals in as many as seven years.