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A little over $3 billion in asset-backed securities deals have emerged ahead of the loan application deadline for a Federal Reserve program supporting this market.

Two of the deals are in the auto sector and a third is backed by equipment loans. Market participants are expecting more deals before the May 5 deadline to access nonrecourse loans under the Term Asset-Backed Securities Loan Facility, or TALF.

Motorcycle company Harley Davidson Inc. (HOG) is roadshowing a $500 million deal that is also eligiblefor funding under TALF. Lead managers are JPMorgan Chase, Citigroup, Deutsche Bank and RBS. The deal is called Harley-Davidson Motorcycle Trust 2009-1 and is backed by motorcycle contracts.

Volkswagen AG (VLKAY) is in the market with a $1 billion deal, called VWALT-09, which is scheduled to be sold May 5. Joint leads are JPMorgan and Bank of America Corp.

Honda Motor Co. (HMC) and CNH Global NV (CNH) are also shopping TALF-eligible deals.

Honda's $1.25-billion asset-backed securities deal, dubbed HAROT 09-2, is backed by auto loans and is also expected to be sold on May 5.

On the largest triple-A-rated tranche of $456 million, guidance is in the range of 150 basis points to 155 basis points over a short-term futures benchmark.

The deal is led jointly by JPMorgan and BNP Paribas SA.

In January, Honda sold a $1.3 billion deal, called HAROT 2009-1, which wasn't eligible for funding under the Fed's program. That deal, led by Barclays, was the first auto asset-backed securities deal of the year.

Investors can apply for the third time for non-recourse loans through the central bank's program. These loans can be used to purchase newly created bonds backed by auto, student, credit-card, small business, equipment and floorplan loans as well as residential mortgage servicing advances.

About $12 billion in new bonds backed mainly by auto and credit-card loans that investors could buy using TALF have sold.

Risk premiums on these and other consumer loan bonds have tightened since the program's launch in March. This will eventually lower the cost of borrowing for consumers taking on new loans.

Price guidance on CNH's $760.81 million equipment loan-backed deal is out. On the largest triple-A-rated tranche worth $281 million, it is in the 180 basis points over a short-term futures benchmark area.

Barclays Capital and Credit Suisse are joint leads on that deal, dubbed CNH Equipment Trust 2009-B. Banc of America Securities, BNP Paribas and Royal Bank of Scotland Group PLC are co-managers.

Financial-services company USAA, which sold a $1.125 billion deal that wasn't eligible for TALF, has said it will tap this market again.

Ford Motor Co. (F) has also said it plans to access the TALF program again. Ford Motor Credit, the finance arm of Ford, sold a $2.954-billion deal backed by auto receivables in March. It was one of the first asset-backed deals eligible under TALF to be sold.

Non-TALF issuance stands at about $9 billion so far this year.

-By Anusha Shrivastava, Dow Jones Newswires; 201-938-2371; anusha.shrivastava@dowjones.com