Capital Finance will refinance a pool of A$368 million in car and truck loans via the sale of bonds by Bella Trust Series 2010-2. It is the second such transaction from Capital Finance this year.As with earlier transactions, Capital Finance (a subsidiary of Lloyds) will retain a proportion ($64 million) of the senior bonds.The average contract balance is $22,000 and the average yield on a loan 11.1 per cent.The pre-sale report from Moody's put the Capital Finance book at $6.1 billion. Once these bonds are sold, securitised funding will represent 15 per cent of liabilities.Arrears on the Bella portfolio ranged from two per cent for chattel mortgages on new cars to 8.5 per cent for used vehicles. Moody's noted, in a media release, that the Bella deal is the eleventh Australian asset-backed securities transaction rated this year, compared with only four for 2009, and seven in 2007, the previous record high. Year-to-date issuance stands at $4.2 billion, compared with $5.1 billion for ABS in 2007, the most active year on record for the sector.