Google Inc. is steering millions of dollars into asset-backed securities tied mostly to auto loans and consumer credit card payments, the Wall Street Journal reported Wednesday.
The Mountain View, Calif.-based company recently purchased triple A-rated debt from Honda Motor Co. and Hyundai Corp, the publication noted. Of Google's $40 billion assets, ABS represents less than 1%.
According to the article, Google's entry in ABS tied to auto loans and credit cards may be a sign that low rates on Treasury securities is part of a growing trend with cash-rich companies seeking out new places to park their funds.
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The Wall Street Journal reported that the shift has benefited issuers of bonds backed by auto loans and credit cards. According to Thomson Reuters, through Aug. 2, $60.68 billion of bonds tied to car loans had been sold in the U.S., which is up 50% from a year earlier, the article noted.
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