Santander Bank Issued $1.3 Billion in Auto Securities
The bank replaced Santander Consumer USA as the originator for its asset-backed securities program.
Updated on Oct. 10, 2026 in Buying/Selling
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Santander Bank has issued $1.3 billion in asset-backed securities secured by a pool of 58,228 non-prime auto loans. The transaction marks a transition in the SDART program, with Santander Bank now serving as the originator following a merger.
Why it matters
This move signals a shift in the corporate structure of the SDART securitization program as Santander Bank assumes the role previously held by Santander Consumer USA. It highlights the continued securitization of non-prime auto debt in the national market.
The underlying loan pool carries a weighted average annual percentage rate of 18.00% and a weighted average FICO score of 605. Contracts feature an average balance of $25,758 with a loan-to-value ratio of 109.70%.
The players
Santander Bank
This major financial institution provides personal and commercial banking services and has recently taken over origination duties for the SDART program.
Citigroup Global Markets
This global financial services firm functions as an underwriter for various debt and equity securities offerings.
Santander Consumer USA
This entity previously operated as the originator for the SDART securitization program before a merger with Santander Bank.
Fitch Ratings
This credit rating agency provides independent opinions on the creditworthiness of corporate and government debt.
The details
The transaction is split into seven tranches of notes under rule 144A, which are not registered with the Securities and Exchange Commission. Citigroup Global Markets served as the lead underwriter for the sale.
Timeline
Oct. 15, 2027: Legal final maturity date for class A-1 notes.
Feb. 15, 2030: Maturity date for class A2 notes.
Nov. 15, 2034: Final maturity date for class E notes.
Roadmap
This issuance reflects a broader trend in the automotive sector where lenders use asset-backed securities to manage the risk associated with non-prime loan portfolios. It positions the bank to continue aggressive lending operations while shifting debt off its balance sheet.
This securitization ensures the bank maintains the liquidity necessary to continue offering new and used vehicle loans to consumers. Borrowers with non-prime credit profiles remain the primary target for these financial products.
The takeaway
This transaction reflects the bank's effort to streamline its operations following internal restructuring. Investors often monitor these pools as a barometer for the credit health of the non-prime auto loan market.
Further reading
For more on market activity, visit the United States Buying/Selling section.
Source note: This article includes information reported by Asset Securitization Report.
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