agent Entrepreneur logo
MenuMENU
SearchSEARCH

GMAC to Sell $618M of Auto Loan-backed Bonds

October 6, 2010
2 min to read


GMAC Bank, a unit of Ally Financial Inc., plans to sell 446.5 million euros ($618 million) of securities backed by German auto loans in its first public offering of the debt in Europe.


The top-rated bonds will have an expected average life of 1.6 years, three people told The Detroit News. They declined to be identified before the deal is completed. Deutsche Bank AG and Royal Bank of Scotland Group Plc are managing the transaction.

Ad Loading...


The securities will be sold through GMAC E-CARAT 2010, a specially created issuing vehicle. The issue will total 507 million euros and two lower-rated portions may be retained, the people said.


European lenders are increasing sales of asset-backed securities as rewards demanded by investors to buy the debt declines. Banks sold a total 13.1 billion euros of asset-backed bonds in September, mostly linked to mortgages and auto loans, in the busiest month since the second half of 2007, according to JPMorgan Chase & Co.


Investors demand about 80 basis points more than the euro interbank offered rate to buy top-rated bonds backed by European auto loans compared with a spread of 135 basis points at the end of 2009, according to JPMorgan Chase & Co data.


GMAC will meet investors next week before opening books on the deal, the people said. Ally Financial sold $584.9 million of bonds backed by loans in August to finance U.S. auto dealer inventories, a person familiar with the transaction told The Detroit News.

More Industry

Blue and white RV parked on beach facing the ocean.
Industryby Lauren LawrenceSeptember 3, 2026

RV Group Expands Carolina Footprint

Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.

Read More →
Photo of two men and one woman on a discussion panel
Industryby Hannah MitchellSeptember 1, 2026

Agent Acumen

An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.

Read More →
Gloved hand holding two wrenches next to “Turn Overdue into Opportunity” Graphic
Industryby Lauren LawrenceAugust 27, 2026

Missed Maintenance Creates Opportunity

As families get back on the road and into daily school routines, service drives have an opportunity to capture customers who are behind on recommended vehicle maintenance.

Read More →
Ad Loading...
Mitsubishi shadow line-up
Industryby Hannah MitchellAugust 25, 2026

Mitsubishi Unveils U.S. Plan

The automaker announced a strategy that includes an expanded lineup and dealership presence, along with more ‘rugged’ and electric models.

Read More →
Photo of a laptop, cellphone and eyeglasses on a desk next to an office window
IndustryAugust 24, 2026

Selling to Grow

The question of whether you should sell your agency and if so, when, is up to you. But it’s a question worth asking to ensure you keep the business on the right path for yourself, employees and clients.

Read More →
Mechanic holding a vehicle diagnostic device while standing above an open car hood
Industryby Hannah MitchellAugust 24, 2026

Recalled Vehicles Hit 5-Year High

Though the number of events has fallen so far this year, impacted units are up significantly. Meanwhile, regulators consider consumer notification changes.

Read More →
Ad Loading...
outside of car dealership with cars parked in front
Industryby Lauren LawrenceAugust 20, 2026

Auto Group Acquires Top-Performing Rooftop

Car Pros sold its Kia Huntington Beach location to Sutherlin Automotive Group, marking the buyer’s third location in Southern California.

Read More →
Cars from the rear on a Shanghai freeway
Industryby Hannah MitchellAugust 19, 2026

China as Pacesetter

Automotive leaders huddled on where North America stands in the global picture and how it can strengthen its position against the Asian juggernaut’s surging industry.

Read More →
Orange BMW car on empty road.
Industryby Hannah MitchellAugust 14, 2026

BMW Concept Car Makes Fuel to Burn

The prototype developed in concert with a South Carolina university engineering team generates more solar energy than it uses in a typical daily commute.

Read More →
Ad Loading...
Six men standing for photo outside of car dealership
Industryby Lauren LawrenceAugust 13, 2026

South Carolina Auto Group Downsizes

Florida-based group Holler-Classic has acquired four rooftops, its first in South Carolina, from Dick Smith Automotive Group.

Read More →
Ad Loading...