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BMW Selling Auto-Leased Backed Notes

Thursday, January 21st, 2010


Bonds, backed by German auto leases are going to be sold by Bayerische Motoren Werke AG (BMW).  These AAA rated notes, with an approximate lifespan of 1.88 years, will total $1.1 billion dollars.

On January 8, 2010, Ford Motor Co. sold bonds backed by auto loans.  According to JPMorgan Chase & Co. data, investors want at least 1 percent more than what the benchmark rates for senior two-year bonds that have been backed by European automotive loans.  This has been cited as the lowest spread since the third quarter of 2008.

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