The automotive sector of the consumer loan-backed bond market is busy again Monday.

Nissan Motor Co. (NSANY, 7201.TO) is offering a $750 million auto-lease backed bond, and automobile finance company AmeriCredit, which was recently acquired by General Motors Co., is tapping the market with a $700 million bond, according to a people familiar with the matter.

AmeriCredit's bond is backed by subprime auto loans. The bond has six tranches, the largest of which is valued at $223 million.

Joint lead managers on the deal are J.P. Morgan, Credit Suisse, Deutsche Bank and Royal Bank of Scotland.

Both bonds are scheduled to price on Wednesday.

The auto sector of the asset-backed bond market has been active with deals coming from Ally Financial Inc., Honda Motor Co. (HMC, 7267.TO) and Ford Motor Co. (F). Several auto issuers have tapped the market multiple times in 2010 and now some say they are done with asset-backed deals for the year.

German automaker Daimler AG (DAI.XE), for instance, will not be tapping this market in 2010. "We will not issue any more ABS this year," said Bodo Uebber, chief financial officer of Daimler, at a meeting on Friday.

He said the company will return next year because the market provides flexibility.

ABS for cars is a "good" product, he said, not one that created a bubble. "It has cars behind it, not derivatives."

Investors like auto ABS because of their short maturities and overall strong performance.

Year to date through Thursday, asset-backed securities valued at $86.77 billion were sold, according to data from Citigroup. Of this, the auto sector contributed $50.95 billion, or about 60%. Last year by this time, securities worth $122.48 billion were sold. Of that, the auto sector comprised 43.89%, at $53.77 billion.

CNH Global N.V. (CNH, NHL.XE) is also in the market with a $721 million equipment loan-backed bond, according to a person familiar with the matter. CNH makes agricultural and construction equipment.

The bond is joint led by Royal Bank of Scotland, Credit Agricole and Societe Generale.

-By Anusha Shrivastava, Dow Jones Newswires; 212-416-2227; anusha.shrivastava@dowjones.com
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