Ford Motor Credit's $1.09 billion asset-backed securitization was launched by underwriters JPMorgan Securities, Morgan Stanley and RBS on Wednesday into strong investor demand, market sources said.

The deal's longer tranches were launched at tighter than expected spreads given stronger appetite for those issues, while Ford's shortest issue required more spread to lure buyers.

Ford's short-term issue was having some difficulty getting done so the spread was widened, said one bond investor. Its other issues garnered strong interest with its longer piece multiple times oversubscribed, the investor said.

The issuer's $285 million of A1-plus rated 0.31-year short-term notes were launched at a wider spread of 4 basis points over Libor, compared to initial spread guidance of flat to 2 basis points over Libor, market sources said.

Last November, Ford sold a non-TALF auto ABS deal that included an A1-plus rated 0.30-year note tranche that priced at a tighter 1 basis point beneath Libor, market sources said.

The issuer's $203.8 million AAA-rated one-year notes and $382 million AAA-rated two-year notes were launched at a substantially tighter spread of 15 basis points over Eurodollar swap futures on Wednesday, versus earlier guidance of 20 to 25 basis points, market sources said.

In last year's sale, Ford's AAA-rated one-year notes priced at a spread of 35 basis points above Eurodollar swap futures, while its AAA-rated two-year notes sold at a spread of 45 basis points over Eurodollar swap futures, market sources said.

A third AAA-rated 3.32-year Ford tranche, which met with substantial demand by investors, was launched at a narrower 25 basis points over interpolated swaps on Wednesday, versus initial guidance of 30 to 35 basis points, sources said.

Ford's prior sale included 3.24-year notes that priced at a spread of 70 basis points over interpolated swaps last year.

The auto segment has led issuance in the ABS market this year with close to $20 billion in deals followed by $69 billion in sales in 2009, with some help from the Federal Reserve's emergency loan program.

Ford's latest offering also included smaller, lower-rated issues that comprised $32 million of AA-rated 4.12-year notes that launched at a spread of 65 basis points, $21.4 million of A-rated 4.21-year notes that launched at a spread of 90 basis points and $21.4 million of BBB-rated 4.21-year notes that launched at a spread of 175 basis points, market sources said.

The auto segment has led ABS issuance this year with close to $20 billion in deals followed by last year's $69 billion in sales with some help from the Federal Reserve's emergency loan program.

(Editing by Chizu Nomiyama )