Hyundai Auto Receivables Trust 2026-B Closes $2.4B Auto Loan Deal

This summary was generated by AI from the company's SEC filing and may contain errors — always verify against the primary source on SEC.gov.

The short version

Hyundai Auto Receivables Trust 2026-B finalized a series of legal agreements on June 17, 2026, to support the issuance of multiple classes of asset-backed notes (bonds backed by pools of auto loans). The deal involves transferring approximately $2.408 billion worth of auto loan contracts into the trust, which then pledges those loans as collateral for the notes. Hyundai Capital America is the seller and servicer of the underlying loans, with Citibank, N.A. serving as the indenture trustee.

Hyundai Auto Receivables Trust 2026-B — a special-purpose trust set up specifically to hold auto loans and issue bonds backed by them — reported on June 17, 2026, that it had closed on a set of agreements forming the legal backbone of its latest securitization (a transaction where loans are bundled together and sold to investors as bonds).

What Was Issued

According to the filing, the trust issued seven classes of notes: Class A-1, Class A-2-A, Class A-2-B, Class A-3, Class A-4, Class B, and Class C. These notes were described in a Final Prospectus dated June 9, 2026, and were officially issued on the June 17, 2026 closing date.

The Loans Behind the Bonds

The trust was funded by approximately $2,408,486,358.62 in auto loan contracts. Hyundai Capital America (HCA) — the seller — transferred those contracts to Hyundai ABS Funding, LLC (HABS), which acted as the depositor (the middle party that passes the loans into the trust). The trust then pledged the loans to Citibank, N.A., which serves as the indenture trustee (the party that holds the pledged assets on behalf of bondholders).

Each individual auto loan in the pool had a remaining balance of at least $5,000 and no more than $100,000, and as of the cutoff date, no loan was more than 30 days past due, according to the filing.

Key Agreements Signed

The filing lists several agreements put in place on the closing date:

Indenture — the main contract governing the bonds and the trustee's duties
Receivables Purchase Agreement — HCA sells the loans to HABS
Sale and Servicing Agreement — HABS transfers the loans into the trust; HCA continues to collect payments from borrowers
Owner Trust Administration Agreement — HCA administers the trust
Amended and Restated Trust Agreement — updates the original agreement that created the trust (originally dated January 23, 2026), with U.S. Bank Trust National Association serving as owner trustee
Asset Representations Review Agreement — Clayton Fixed Income Services LLC will review loan representations if disputes arise

Investor Protections

The filing notes that if any loan is found to have violated the seller's representations and warranties (the promises HCA made about the quality of the loans), HCA must either fix the problem or buy back the affected loan within a set timeframe. Bondholders can also request an independent review of disputed loans, and unresolved disputes can go to binding arbitration (a private dispute resolution process).

The closing took place at the offices of Mayer Brown LLP in Chicago, Illinois, the filing said.

Key facts

Filing date: June 17, 2026

Trust: Hyundai Auto Receivables Trust 2026-B

Total auto loan receivables transferred: approximately $2,408,486,358.62

Note classes issued: Class A-1, Class A-2-A, Class A-2-B, Class A-3, Class A-4, Class B, and Class C

Seller and servicer: Hyundai Capital America (HCA)

Depositor: Hyundai ABS Funding, LLC (HABS)

Indenture trustee: Citibank, N.A.

Owner trustee: U.S. Bank Trust National Association

Asset representations reviewer: Clayton Fixed Income Services LLC

Individual loan balances: minimum $5,000, maximum $100,000

No loans more than 30 days past due as of the cutoff date

Original trust agreement dated January 23, 2026

Why it matters

This filing marks the formal closing of a roughly $2.4 billion auto loan securitization, which is one of the larger routine capital markets transactions Hyundai Capital America uses to fund its auto lending business. For investors who hold the trust's notes, the filing establishes the legal framework — including seller warranties, repurchase obligations, and arbitration rights — that governs how their investment is protected if loan quality problems emerge. The deal's scale and structure are consistent with standard auto ABS (asset-backed securities) practice, making it a low-surprise but meaningful administrative milestone for existing noteholders and market participants tracking Hyundai's funding activity.

Frequently asked

What is Hyundai Auto Receivables Trust 2026-B?

It is a special-purpose trust created to hold a pool of Hyundai auto loans and issue bonds backed by those loans to investors. The trust itself does not operate a business — it exists solely to hold the loans and pass payments through to bondholders.

How much in auto loans back this deal?

According to the filing, approximately $2,408,486,358.62 in auto loan contracts were transferred into the trust.

Who services (collects payments on) the loans?

Hyundai Capital America acts as both the seller of the loans and the servicer, meaning it continues to collect monthly payments from borrowers and passes them through to the trust.

What happens if a loan turns out to have a problem?

If a loan is found to have breached the seller's representations and warranties, Hyundai Capital America must either fix the problem or repurchase that loan from the trust, generally within 60 days of discovering or being notified of the issue.

What the filing reported

1.01 Entry into a Material Agreement

9.01 Financial Statements & Exhibits