Silver Arrow S.A. Compartment 8: 01 July 2017
The annual pilgrimage to the market by a Silver Arrow transaction, where again the auto loan receivables secured by certain passenger cars and/or commercial vehicles and certain other collateral have all been originated by Mercedes-Benz Bank AG.
Eligibility criteria for inclusion in the pool (include): the loan receivable has been originated by the seller; each receivable has been originated in Germany for the sale of a financed vehicle in the ordinary course of the seller's business and none of the obligors is an affiliate of Mercedes-Benz Bank AG; the Obligor is not insolvent; the title to each vehicle is held by the seller; each loan receivable has an original term of no longer than 72 months; each loan receivable has a seasoning above or equal to one month; each obligor is a resident of Germany; no loan receivable is delinquent or defaulted; the monthly instalments are paid by direct debit; the brand of the respective financed vehicle is either a Mercedes or a Smart.
At the cut-off date (30 April 2017) the portfolio of 60,366 loans has been advanced to 56,692 obligors. Client type (by outstanding loan principal): 50.67% commercial and 49.33% private. Contract type (by outstanding loan principal): Used Private Balloon 23.53%, New Commercial Balloon 21.83%, New Private Balloon 16.23%, New Commercial Amortising 15.28%, Used Commercial Balloon 7.54%, others 15.59%. Vehicle type (by outstanding loan principal): new 56.45%, used 43.55%. Vehicle (by outstanding loan principal): cars (MB) 58.46%, vans 26.29%, trucks 12.68%. The average outstanding principal is Eur19,745 and the largest is Eur155,396. The pool is highly granular, with the largest obligor accounting for just 0.03%, the top 5 for 0.11% and the top 20 obligors for 0.42%. Seasoning is a healthy 13.70 months.
CRR/405: The Seller will retain, for the life of the transaction, a material net economic interest of not less than 5% in the transaction in accordance with Article 405, Article 17 and Article 254. As of the Issue Date, such interest will, in accordance with Article 405 paragraph 1 sub-paragraph (d) of the CRR, be comprised of an investment in the Class B Compartment 8 Notes and the granting of the Subordinated Loan, which is together equivalent to no less than 5% of the nominal amount of the securitised exposures.
Compare/contrast: Silver Arrow 7