(Bloomberg) -- At least 10 issuers are marketing deals in the US auto asset-backed securities market, with many hoping to finalize terms early this week to avoid potential volatility ahead of the latest consumer price index data release on Wednesday. 

Vehicle makers like Honda Motor Co., Stellantis NV, Hyundai Motor Co. and Harley-Davidson Inc., as well as financial firms like Bank of America Corp. and Santander Bank, have brought around $9 billion of auto-backed ABS deals to kick off a busy start to the week, data compiled by Bloomberg News shows. 

Sales of auto ABS debt have been high enough this year to spur at least one strategist to consider revising her firm’s forecast for overall asset-backed issuance in 2024. On Friday, BofA Securities’ head of ABS Strategy, Theresa O’Neill, wrote that “it’s becoming increasingly likely” the firm will need to revise up its full-year ABS sales forecast of $270 billion, citing “increases in the Auto ABS sector and the broadly inclusive Other ABS sector.”

Sales may be relatively heavy early in the week as issuers look to sell debt before the CPI release on May 15, which may cause turmoil in interest-rate markets. The latest batch of CPI data is expected to show inflation slowing, with the core rate — considered the best gauge of underlying pressures — anticipated to have risen 0.3% in April from a month earlier, down from 0.4% in March, according to forecasters surveyed by Bloomberg.

So far, more than $76 billion of auto ABS deals have priced this year, compared to roughly $57 billion at this same time last year — marking a 33% increase year-over-year — according to data compiled by Bloomberg News.

The burst of auto issuance is helping drive overall ABS sales in a market that is already running 28% faster than last year. More than $132 billion of ABS deals have hit the market in 2024, with issuers front-loading the year’s calendar before any disruptions caused by the US general election, as well as to take advantage of lower borrowing costs.

Aside from borrowers getting ahead of US presidential and congressional elections, sales are also being driven by concerns over the direction of rates and spreads, leftover supply from last year, higher consumer debt, a few sectors that are typically less active ramping up, and an overall strong market tone for ABS, according to O’Neill.

©2024 Bloomberg L.P.