GE Capital issues first dealer floorplan asset-backed security

WASHINGTON — Last week, GE Capital issued the first dealer floorplan asset-backed security (ABS) under the Term Asset Backed Securities Lending Facility (TALF), according to Mathew Dunn of the National Marine Manufacturers Association.

On Aug. 6, GE brought $500 million in securitized floorplan loans to market under TALF through its GE Dealer Floorplan Master Note Trust, including floorplan loans for marine, powersports, and others, said Dunn, NMMA’s Legislative Director. The marine component was the largest product share, consistent with marine floorplan lending being the largest part of GE’s floorplan business.    
“NMMA is encouraged by this development and hopes it will provide some relief in the ongoing credit crisis for the marine industry,” Dunn said in an e-mail to Boating Industry. “NMMA has worked directly with officials at the Treasury Department, the Federal Reserve, and the Federal Reserve Bank of New York, which administers TALF, in successfully getting marine (or non-auto) floorplan ABS eligible under the TALF program, and making  the terms of TALF more equitable along all asset classes. We hope this transaction increases liquidity in the market, reduces the cost of capital, and signals that TALF is beginning to thaw primary and secondary markets.” 

TALF is designed to reignite securitization markets by providing financing to investors to support their purchases of certain AAA-rated asset-backed securities.

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