Price guidance emerges for Toyota's $1.25 bln ABS

NEW YORK, April 28 (Reuters) - Price guidance for Toyota Auto Owner Trust's $1.25 billion auto asset-backed securitization (ABS) emerged on Wednesday, market sources said.

The offering's AAA-rated one-year notes are expected to price at a spread of 15 basis points to 20 basis points over Eurodollar swap futures, while its AAA-rated two-year notes are seen pricing at a spread of 18 basis points to 20 basis points over Eurodollar swap futures, market sources said.

Toyota's 2.86-year AAA-rated tranche is expected to price at a spread of 20 basis points to 25 basis points over interpolated swaps, market sources said.

The deal is expected to price later Wednesday through underwriters JPMorgan Securities, Barclays Capital and Bank of America Merrill Lynch, sources said.

The auto ABS segment has led issuance in the asset-backed market this year comprising some $18 billion of the $34 billion of securities sold to investors. Ford Motor Credit, BMW, Ally Auto and Mercedes Benz were among some of the latest issuers. (Reporting by Nancy Leinfuss; editing by Jeffrey Benkoe)