Volkswagen tightens auto spread to 2018 with market reopener

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By Tom Brown
25 Feb 2021

Auto spreads in the European ABS market have tightened to levels not seen since 2018 after Volkswagen Bank priced its German lease deal, VCL 32, at a discount margin of 15bp over one-month Euribor on Wednesday.

The €941m tranche, with a weighted average life of 1.19 years, was priced at 100.67%, with the 15bp spread around 5bp tighter from initial price thoughts.

Volkswagen has now reopened the auto ABS market, receiving a €2.4bn order book for its first deal of 2021, achieving 2.5x coverage ...

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