Investors in the asset-backed securities market are seeking relief from record-low yields by snapping up riskier securities tied to jewelry loans and cars parked on dealership lots.
Springleaf Finance Corp., the lender to borrowers with poor or limited credit, sold $604 million of bonds last month backed by personal loans secured by household goods from furniture to electronics, its first such deal, offering documents show. World Omni Financial Corp. is marketing $350 million in floorplan debt, which finances vehicles prior to sale and generally carries more risk than loans to consumers, said a person familiar with the offering, its first such deal since 2009.
