Cadwalader partner Hunter White was featured in Auto Finance News discussing the growing adoption of multi‑seller asset‑backed securitization (ABS) structures among credit unions, following Corporate One Federal Credit Union's $335 million debut auto ABS issuance backed by Day Air, Everwise and Wright‑Patt credit unions.
Hunter explained that multi‑seller transactions "save credit unions on upfront costs" and open access to the capital markets for smaller institutions that would not typically pursue standalone securitizations. He added that as these collaborative structures gain traction within the credit union network, "the model is going to spread" across the industry.
He also noted that as credit unions become more familiar with securitization as a financing tool, their deal structures increasingly resemble traditional prime auto ABS transactions, with growing potential for recurring or "programmatic" issuances.
Read the full article in Auto Finance News here (subscription required).