Silver Arrow S.A. Compartment 11: 29 May 2020
Another 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 2020) the portfolio of 94,642 loans has been advanced to 88,988 obligors. Client type (by outstanding loan principal): private 56.06% and commercial 43.94%. Contract type (by outstanding loan principal): Used Private Balloon 35.33%, New Commercial Balloon 19.11%, New Private Balloon 14.50%, Used Commercial Balloon 10.40%, New Commercial Amortising 8.59%, others 12.07%. Vehicle type (by outstanding loan principal): used 57.02%, new 42.98%. The average outstanding principal is Eur19,969 and the largest is Eur183,615. The pool is highly granular, with the largest obligor accounting for just 0.02%, the top 5 for 0.10% and the top 20 obligors for 0.29%. Seasoning is a healthy 17.87 months.
EU Risk Retention: The Seller will retain for the life of the transaction a material net economic interest of not less than 5% in the transaction as required by Article 6 of the Securitisation Regulation. As of the Issue Date such interest will, in accordance with Article 6(3)(d) of the Securitisation Regulation, be retained through the holding of the Class B Notes and the Subordinated Loan.
US Risk Retention: The issuance of the Compartment 11 Notes was not designed to comply with the U.S. Risk Retention Rules other than the exemption under Section _.20 of the U.S. Risk Retention Rules, and no other steps have been taken to accomplish such compliance.
STS: As of the Issue Date, Transaction 11 is intended to meet the requirements for simple, transparent and standardised non-ABCP securitisations provided for by Articles 19 to 22 of the Securitisation Regulation.
Compare/contrast: Silver Arrow Comp 10, Bavarian Sky S.A. German Auto Loans (Comp 2020-1), Volkswagen Car Lease No.30 Ltd