BMW selling asset-backed securities tied to consumer debt in the U.S.

Bloomberg reports that BMW AG is selling asset-backed securities tied to U.S. consumer debt. Asset-backed securities are secured by company or bank loans for merchandise or services purchased on credit.

According the Bloomberg’s report, BMW is issuing $750 million of securities backed by consumer payments connected to car leases. Nissan is also doing the same by selling $1 billion of securities backed by consumer payments on car loans.

BMW had previously sold 742 million euros of bonds backed by German auto leases during the start of 2010.

Bloomberg’s data also indicates that car loans have the highest quota in bond sales tied to consumer debt this year. Car loans account for $43 billion of the $64 billion marketed.

Source: Businessweek