The plan, which forms part of Cerberus' broader acquisition financing strategy that is also based on the high-yield and loans markets, would be one of the largest corporate securitisations to date.
Philip Watkins, a credit analyst at Commerzbank in London, said Chrysler Financial Services could issue $30bn worth of asset-backed bonds, as well as $10bn in unsecured high-yield debt, with the remainder of the estimated $50bn to $65bn refinancing being structured through the loans market.
Cerberus' acquisition financing package for Chrysler, the largest to date backing a private equity-led deal, is being underwritten by JP Morgan, Goldman Sachs, Citigroup, Morgan Stanley and Bear Stearns.
