PCP noise pushes spreads out on UK auto ABS

PA - VW badge
By Sam Kerr
06 Sep 2017

Headlines about higher potential risks on personal contact purchase (PCP) loans in the UK auto market have led to investors demanding more spread on the most recent auto ABS transaction, said market participants this week.

Driver UK 6, issued by VW Bank, began marketing triple-A notes at 50bp over one monthLibor, but tightened to 48bp over at pricing.

Though tightening by ...

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