New deal: BBVA consumer auto 2025-1, FT STS Spanish auto ABS

New deal: BBVA consumer auto 2025-1, FT STS Spanish auto ABS

On July 2, 2025, BBVA announced the issuance of a new asset-backed security (ABS) deal, BBVA Consumer Auto 2025-1, which is part of the FT STS Spanish auto ABS series. This deal represents a significant milestone in the Spanish auto ABS market, offering investors a new opportunity to participate in the consumer auto loan securitization sector.

The BBVA Consumer Auto 2025-1 deal is backed by a diverse pool of auto loans, including those for new and used vehicles. The securitization process involves the sale of these loans to a special-purpose vehicle (SPV), which then repackages the loans into interest-bearing securities and issues them to investors. This structure ensures that the ABS is treated as being bankruptcy-remote from the originator, providing investors with a higher level of security [1].

The deal is notable for its focus on consumer auto loans, a sector that has shown strong growth in recent years. According to the Structured Credit Investor (SCI) database, the Spanish auto ABS market has been one of the most active segments in Europe, with a significant number of deals being issued in recent years [1]. This trend is expected to continue, driven by the increasing demand for auto loans and the favorable economic conditions in Spain.

The BBVA Consumer Auto 2025-1 deal is expected to attract a wide range of investors, including banks, credit card companies, and other financial institutions. The deal is structured to provide investors with a high degree of liquidity and transparency, with regular updates on the performance of the underlying loan pool. This structure is designed to meet the needs of both institutional and retail investors.

In conclusion, the BBVA Consumer Auto 2025-1 deal represents an exciting opportunity for investors to participate in the Spanish auto ABS market. With its focus on consumer auto loans and its commitment to transparency and liquidity, this deal is poised to be a successful addition to the FT STS Spanish auto ABS series. Investors should carefully evaluate the deal's terms and conditions before making any investment decisions.

References:
[1] https://www.structuredcreditinvestor.com/ABS/