Tricolor Holdings released its second social bond of the year as the lender looks to expand further and increase its originations. The subprime lender issued an auto asset-backed securitization (ABS) transaction on May 14, a $276.7 million social bond backed by subprime auto loans, as reported by Finsight, a securities monitoring firm. This latest social bond is the largest […]
**FAQ**
1. What is a social bond?
A social bond is a type of bond that is issued to raise funds for projects that have a positive social impact.
2. How does an auto asset-backed securitization work?
An auto asset-backed securitization is a financing technique in which a lender pools together a group of auto loans and sells them to investors as securities.
**Conclusion**
Tricolor Holdings’ issuance of a social bond demonstrates their commitment to responsible lending practices and their focus on growth in the subprime auto loan market. This latest transaction is a significant milestone for the company and highlights their continued efforts to expand and serve their customer base.
