June 19, 2024

Tricolor launches $277M social asset-backed securities bond

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 […]


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.


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.

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