Ally Bank is issuing $1.1 billion in auto asset-backed securities through the Ally Auto Receivables Trust, backed by 59,907 receivables from prime borrowers. BofA Securities is the lead underwriter on the transaction. The deal comprises seven tranches of class A, B, C and D fixed-rate notes, with legal final maturity dates ranging from March 2027 through February 2034. The pool shows slight concentration towards FICO scores of 700-800, with 80% comprising extended-term contracts of 60-plus months. Around 60% of financed vehicles are used cars. Loans have an average principal balance of $18,728 with a 9.10% weighted average APR. Rating agencies are monitoring macroeconomic factors, particularly student loan debt, which could affect borrowers' ability to service auto loans.

GMAC Financial Services will receive $7.5 billion in additional government aid, marking the second bailout for the auto lender. The Treasury Department will inject $4 billion to support loans to Chrysler dealers and customers, plus $3.5 billion to bolster GMAC's capital position. The Federal Deposit Insurance Corp. granted GMAC access to its debt guarantee programme, allowing the junk-rated company to issue up to $7.4 billion in guaranteed debt. The Federal Reserve also waived rules to give GMAC's Ally Bank more flexibility in lending to GM customers. GMAC received $5 billion in December and failed the government's bank stress test, requiring it to raise $11.5 billion in additional capital. The Treasury will soon exercise its right to swap an $884 million GM loan for a 35.4% stake in GMAC.