Softening pushes VW pricing wider as spreads converge

By Joseph McDevitt
31 Jan 2014

Volkswagen priced its latest VCL auto lease securitization wider than both VCL deals it priced in 2013, as spreads between different programmes in the German auto ABS sector continued to converge.

Despite being 1.4 times oversubscribed, VCL 19’s €697.5m of triple-A rated class ‘A’ notes, with 1.24 year weighted average life and 8.2% credit enhancement, were priced at 35bp over one month Euribor. 

The ‘A’ tranche in VCL 17, which was priced in March last year, came at 25bp over ...

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