Another Company Just Joined the Hot Market Market for Subprime Auto Bonds
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Add another auto lender to the list of those capitalizing on booming demand for bonds backed by financing for car buyers who are prone to default.
GFC Lending LLC, which does business as GO Financial, is planning to issue $180 million of securities tied to subprime loans made via applications submitted by car dealers, its first securitization, according to a presale report from Kroll Bond Rating Agency. The bonds, which are backed by about $257 million of loans, may be rated as high as A by Kroll.