DFS Discover Financial Services

After a pause of about three weeks, the consumer loan-backed securities market came roaring back Monday as companies announced more than $3.5 billion of new asset-backed bonds.

The auto sector is taking the lead, as it has all year. Nissan Motor Co.(NSANY, 7201.TO) announced a $1 billion bond, BMW AG (BMW.XE) a $750 million deal and AmeriCredit Auto Receivables Trust a $700 million bond.

Discover Credit Card's bond was increased in size to $600 million from an original $500 million and has launched. All Student Loan Group has a $458.32 million student loan-backed bond, according to people familiar with the matter. Cabela's Inc. has a $212.5 million credit-card loan-backed bond as well.

Through Friday, the asset-backed market had year-to-date issuance valued at $72.29 billion, according to Citigroup. During the same period last year, that figure was $98.69 billion.

The auto sector comprised 55.51% of total issuance so far, at $40.13 billion. Last year, this sector comprised 40.09% of issuance at $39.57 billion.

Activity in the credit-card sector has been markedly slow: year-to-date issuance through Friday stood at $5.3 billion, down from $31.3 billion at this point in 2009, according to Asset-Backed Alert, a trade publication. That marks a decline of 83% at a time when overall sales of asset-backed bonds are up about 1.3%. Issuers are concerned about changes in accounting rules and other regulations, crimping new bond sales.

Nissan Auto Owner Receivables Trust 2010-A's $1 billion prime auto loan-backed bond was led jointly by Bank of America Merrill Lynch, HSBC and Royal Bank of Scotland. It is scheduled to price early this week. The bond securitizes prime-quality retail installment auto loan contracts originated by Nissan Motor Acceptance Corp., which has issued 29 public transactions since 1999. This is its first public retail issuance since March 2009, according to Moody's Investors Service.

BMW's auto lease-backed bond is valued at $750 million and is scheduled to price on Wednesday, according to a person familiar with the matter. Joint lead managers on the bond, dubbed BMWLT 2010-1, are JP Morgan and Citigroup.

This is BMW Financial Services NA LLC's fourth publicly registered transaction backed by auto-lease receivables since 2000, according to a note from Moody's.

AmeriCredit has offered a $700 million bond, according to a person familiar with the matter. Joint lead managers on the bond, dubbed AMCAR 2010-3, scheduled to price later this week, are Barclays Capital, UBS and Wells Fargo.

The AmeriCredit bond is a securitization of subprime-quality retail installment auto-loan contracts originated by AmeriCredit Financial Services, Inc. AmeriCredit has issued more than 60 subprime transactions since 1994, according to Moody's. This transaction is its fifth overall and third senior-subordinate retail issuance of the year.

Discover's single-tranche bond is joint led by Deutsche Bank Securities and JP Morgan Securities. It launched at 58 basis points over the one-month London interbank offered rate, or Libor.

All Student's bond is led by JP Morgan and is scheduled to price later this week.

-By Anusha Shrivastava, Dow Jones Newswires; 212-416-2227; anusha.shrivastava@dowjones.com

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