The finance arm of Ford Motor Co. plans to sell $5.3 billion of car-loan bonds as investor demand increases for asset-backed securities, according Bloomberg.
The company has already made two sales in the asset-backed market this year. Brenda Hines, vice president of global communications at Ford Motor Credit confirmed the sale, Bloomberg said.
The Federal Reserve recently started expanding the type of collateral it accepts to give out loans from its Term Securities Lending Facility. Auto, credit card and student loan asset-backed securities (ABS) with 'AAA' ratings are now being accepted.
The moves have been made to boost liquidity in the U.S. credit markets after reluctance by investors to buy those types of securities.
The bond sale by Ford Motor Credit is being managed by Citigroup, Merrill Lynch & Co., BNP Paribas, Lehman Brothers Holdings Inc., Morgan Stanley and Royal Bank of Scotland.