NAPERVILLE, Ill.–Alloya Corporate FCU said it has settled its first-ever multi-issuer auto loan asset-backed securitization (ABS), which was fully funded after being oversubscribed by investors.
The securitization, backed by a diversified pool of auto loans originated by three of Alloya’s member credit unions, was structured to optimize investor appeal while maintaining strong credit quality, according to Alloya Corporate.
“We were very pleased with the strong support this issuance received from a wide variety of investors” Andrew Kohl, Alloya’s chief investment officer, said in a statement.
The three credit unions involved were Minnesota’s Blaze CU, Illinois’ Consumers CU, and Indiana’s Interra Credit Union.
Individuals’ Contributions Highlighted
In a statement, the corporate thanked a number of people for their work in “pioneering this groundbreaking accomplishment, including:
- Justin Burleson, SVP, CFO, and COO; Craig Backstrom, VP-consumer lending operations, and Joel Tauscher, VP-accounting and finance at Blaze Credit Union)
- Sean Bowers, CFO, and Vinay Duggirala, VP-finance with Consumers Credit Union)
- Jim Henning, CFO, and Heather Cripe, AVP and manager of finance, at Interra Credit Union.
Reflecting Cooperatism
“Credit unions are cooperatives, and no transaction can reflect that better than this transaction” Kohl added in a statement. “It took multiple months, strong coordination and countless interactions to be sure that we accomplished our goal of completing the first ever credit union multi-issuer auto loan securitization. It has proved the concept can work, and we look forward to many future issuances from multiple credit unions throughout the United States.”
