OneMain Direct Auto Receivables Trust 2026‑1 (ODART 2026‑1) issued four tranches of asset‑backed securities totaling $500 million, backed by a pool of auto‑loan receivables. The transaction marks OneMain’s first auto‑loan ABS issuance in 2026 and represents a significant expansion of the company’s capital‑raising toolkit.
Preliminary ratings were assigned by three agencies. KBRA assigned credit enhancements of 32.05% for Class A, 27.61% for Class B, 21.29% for Class C, and 2.71% for Class D. S&P Global Ratings gave preliminary ratings of AAA (sf) to Class A, AA (sf) to Class B, A (sf) to Class C, and BBB‑ (sf) to Class D. Morningstar DBRS provisionally rated the notes (P) AAA (sf), (P) BBB (high) (sf), and (P) A (high) (sf). The differing credit‑enhancement figures reflect each agency’s methodology but confirm a robust structure for all tranches.
The trust includes a three‑year revolving period during which new collateral may be purchased. The revolving period allows the trust to replace or add receivables that meet the same credit and liquidity criteria, ensuring the asset pool remains of high quality throughout the life of the notes.
Since 2013, OneMain has issued 39 auto‑loan and 31 consumer‑loan securitizations. This latest issuance is part of a broader strategy to diversify funding sources and access lower‑cost capital markets, reinforcing the company’s balance‑sheet strength and liquidity position.
The capital raised will support OneMain’s expanding auto‑finance portfolio and fund future growth initiatives. In Q2 2025, the auto‑finance segment’s managed receivables exceeded $2.6 billion, with originations up 29% year‑over‑year. The 2024 acquisition of Foursight Capital further strengthened OneMain’s indirect auto‑lending capabilities, positioning the company to capture additional market share in a competitive environment.
The issuance demonstrates OneMain’s continued ability to tap capital markets amid evolving economic conditions. Investor demand for auto‑loan ABS remains robust, and the trust’s structure and ratings signal confidence in the underlying collateral and the company’s strategic execution.
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