General Motors Acceptance Corp introduced a new structure to the US asset backed market this week with a $2.125bn securitisation of retail auto loans that offers soft bullet maturities for the first time. Credit card backed securities have long enjoyed an unchallenged position as the benchmark ABS class in the US, partly because of the huge volume of supply from reputable issuers, but also because the master trust structure allows deals to be structured with soft bullet maturities that make them convenient investments and good surrogates for Treasuries.
August 27, 1999