Bond insurer Assured Guaranty Corp (AGC) said that it will provide a financial guaranty insurance policy for $200m of automobile receivables backed notes priced by AmeriCredit Automobile Receivables Trust 2010-A.
The company said that the issue will be collateralized by approximately $238m of loans financing automobiles, light duty trucks and vans. In addition to the overcollateralization, investors and AGC are protected in the transaction by excess cashflow, an interest spread account and limited cross-collateralization with certain other AmeriCredit transactions.
According to company, the AGC financial guaranty insurance policy will unconditionally and irrevocably guarantee payments of interest and principal due on each insured distribution date.
Paul Livingstone, senior managing director of structured finance at AGC, said: “This is the first public asset-backed transaction we have guaranteed outside of the secondary market for some time, and we look forward to increasing our participation in the resurgent ABS market. Further, we are very pleased to be working with AmeriCredit, a long-time client whose track record reflects its strong market position and experienced management.”