We increasingly use asset-backed securities – ABS – as a refinancing instrument.
As of June 30, 2016, Daimler had around 111 billion euro outstanding financial liabilities – primarily for the refinancing of the leasing and financing business of Daimler Financial Services. Treasury uses various financial instruments for funding. Asset-backed securities, abbreviated as ABS, play an increasingly important role in meeting the ever growing refinancing needs.
Daimler uses ABS transactions since the late '90s, at first primarily in the USA. Other important ABS markets are Germany and Canada. Also China, which has been established early this year. Further expansion is planned for the existing ABS programs. ABS projects in Great Britain and Australia are ongoing, too. We intend to establish new ABS platforms in these countries during the next year to create additional refinancing potential.