Finance
American Honda Finance prepares to sell up to $2.1 billion in prime auto ABS
A securitization of retail installment auto loan contracts, extended to prime-quality borrowers, amounting to about $1.5 billion, and potentially increasing to $2.1 billion is being marketed to investors through the Honda Auto Receivables 2024-1 Owner Trust.
Due to close shortly, the transaction will issue notes through four tranches of class A notes, according to ratings analysts at Moody’s Investors Service. Regardless of the issuance amount—the deal could be $1.4 billion, $1.8 billion or $2.1 billion—all of the notes benefit from total hard initial credit enhancement representing 2.75% of the portfolio securitization amount at closing. That is composed of a non-declining reserve fund of 0.25% and 2.50% of the initial pool balance, the rating agency said. The deal also benefits from excess spread.
As for pricing expectations, the A1 notes are expected to price at par, with a 13 basis-point spread over the three-month interpolated yield curve, according to Asset Securitization Report‘s deal database. Otherwise, spreads on the A2 notes are expected to land at around 44 basis points over the benchmark through 77 basis points over the A4 notes.
Known as HAROT 2024-1, the transaction will repay investors sequentially.
As the notes are all class A, with maturity dates of Feb. 18, 2025 on the A1 notes; Sept. 15, 2026 on the A2 notes; Aug. 15, 2028 on the A3 notes and May 15, 2030 on the A4 notes, Moody’s said.
American Honda Finance originated the underlying contracts, Moody’s said. It will also service the notes, an arrangement that Moody’s considers one of the deal’s main credit strengths, given that it is highly rated, stable and has more than 20 years of securitization experience. Other credit strengths include strong credit attributes in the collateral itself, including a weighted average (WA) FICO score of 768 for all three of the pools. The pool has a high ratio of tier A loans, 77.4% for all three pools, a few notches better than the HAROT 2023-4 transaction, which saw a 77.1% concentration of tier A loans, the rating agency said.
MUFG Securities Americas, Barclays Capital,
All of the notes scored triple-A ratings from both Moody’s and S&P Global Ratings, except the A1 notes. For those, Moody’s assigned a P1 rating, and S&P gave an A1+ rating.
Harley-Davidson’s new CEO wants to transform how people think about the iconic motorcycle brand, so the company is trying something different.
This week, Harley announced a new strategy that focuses on lower-priced bikes, rather than relying on older, more affluent customers to buy its higher-margin touring models.
“Back to the Bricks builds on our core strengths and competitive advantages, harnessing the passion of our riders to deliver profitable growth for the Company and both our dealers and shareholders,” Harley CEO Artie Starrs said this week. “As we drive towards this new phase of growth, we remain committed to the craftsmanship and dedication that define our brand.”
Entry-level Harley-Davidsons cost about $13,000, while the higher-end Adventure Touring models average about $23,250, and the Premium Range &CVO models cost about $38,500, according to Reuters.
Harley’s new strategy targets a core profit of over $350 million from its motorcycle business by 2027 and over $150 million in cost reductions.
To kick off the new strategy, Harley is introducing Sprint, a new entry-level model powered by a smaller 440cc engine, later in the year.
What is Harley-Davidson’s “Back to the Bricks” strategy?
Harley’s new strategy relies on more than just pushing buyers toward cheaper vehicles to increase volume. The 123-year-old company has a set of five pillars on which it is building its future.
Harley-Davidson “Back to the Bricks” 5-point plan
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Deep appreciation of Harley-Davidson’s competitive advantages and legacy: The Company’s iconic brand, diversified and powerful revenue channels, and best-in-class dealer network provide a powerful foundation for growth.
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Renewed commitment to exclusive dealer network to drive enterprise profitability: Harley-Davidson’s dealers are a competitive advantage. The Company is planning actions to enable dealers to double profitability in 2026 and then double it again by 2029.
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Immediate actions to recapture share in areas where Harley-Davidson has right to win: Harley-Davidson has strong legacy equity in existing markets including new motorcycles, used motorcycles, Parts & Accessories, and Apparel & Licensing. The Company’s new strategy is focused on positioning the Company to regain share and drive meaningful volume growth in categories where it benefits from credibility, scale, and deep rider connection.
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Strong financial position with a path to stronger free cash flow and EBITDA margin: Cost and restructuring actions already underway support a path to stronger free cash flow and EBITDA margin over time.
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Bolstered management team with balance of fresh perspectives and institutional knowledge: Harley-Davidson has made a number of leadership appointments that support the Company as it leverages its innate strengths.
Written by Jitendra Parashar at The Motley Fool Canada
Dividend investing can be one of the simplest ways to build long-term wealth while creating a steady stream of passive income. But in my opinion, a good dividend stock is about much more than just a high yield. Beyond dividend yield, investors should also look for companies with durable businesses, reliable cash flows, and a history of rewarding shareholders consistently over time.
That’s exactly why many investors turn to financial stocks. Banks and asset managers often generate recurring earnings through lending, investing, and wealth management activities, allowing them to support stable dividend payments even during uncertain market conditions.
Two Canadian financial stocks that stand out right now are AGF Management (TSX:AGF.B) and Toronto-Dominion Bank (TSX:TD). Both companies offer attractive dividends backed by solid financial performance and long-term growth strategies. In this article, I’ll explain why these two financial stocks could be worth considering for income-focused investors right now.
AGF Management stock continues to reward shareholders
AGF Management is a Toronto-based asset manager with businesses across investments, private markets, and wealth management. Through these divisions, the company offers equity, fixed income, alternative, and multi-asset investment strategies to retail, institutional, and private wealth clients.
Following a 59% rally over the last 12 months, AGF stock currently trades at $16.67 per share with a market cap of roughly $1.1 billion. At current levels, the stock offers a quarterly dividend yield of 3.3%.
One reason behind AGF’s strong recent performance is its increasingly diversified business model. The company has expanded its investment capabilities and broadened its geographic reach, helping it perform well across varying market environments.
In the first quarter of its fiscal 2026 (ended in February), AGF posted free cash flow of $36 million, up 14% year over year (YoY), driven mainly by higher management, advisory, and administration fees. These fees climbed to $92.5 million as demand for the company’s investment offerings strengthened.
AGF has also been focusing on expanding its alternative investment business and introducing new investment products. With strong cash generation and growing demand for alternative investments, AGF Management looks well-positioned to continue rewarding investors over the long term.
TD Bank stock remains a dependable dividend giant
Toronto-Dominion Bank, or TD Bank, is one of North America’s largest banks, serving millions of customers through its Canadian banking, U.S. retail banking, wealth management and insurance, and wholesale banking operations.
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