Hotels tap cheap financing with timeshare ABS

Dominican Republic
By Ryan Bolger
23 Oct 2014

Timeshare ABS issuance has picked up as hotel operators have taken advantage of cheap funding. But some investors think spreads have got too narrow for timeshare-backed notes because macroeconomic factors could make it more difficult for operators to manage and sell timeshare properties.

Of the eight timeshare ABS deals issued so far in 2014, three were issued since the start of September, according to GlobalCapital’s Deal Flow Database, and two more deals are in the pipe. If deals by Wyndham Resorts (Sierra Timeshare 2014-3 Receivables Funding) and Hilton Resorts (Elara HGV ...

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