Average purchase-loan amounts shrank for the second week in a row and are currently 12% below their record size in March.

Amid reduced M&A activity, U.S. middle-market borrowers and investors in asset-backed securities are trying to reset and figure out where the right valuations levels are, says Sengal Selassie, CEO of Brightwood Capital Advisors, a lender and issuer of CLOs.

But second home sales — which were below pre-pandemic levels for the first time in 24 months during May — may slow in the future as those in vulnerable areas get tougher to insure.

The transaction features two potential securitizations of collateral pools valued at approximately $1.11 billion and $1.32 billion, with bonds totaling $1.01 billion and $1.20 billion.

As of the May 31, 2022 cut-off date, 95.6% of the loans were current, of which 2.1% are bankruptcy-performing loans and 4.4%, 30 days delinquent.

Questions remain around switching benchmarks that could result in unexpected refinancings

Compared to the baseline macroeconomic scenarios updated in March, near-term growth outlooks have deteriorated across most DBRS Morningstar-rated sovereigns worldwide.

Loan forgiveness would help offset FFELP student loan ABS low prepayment rates and maturity risk, a primary driver of rating downgrades since 2016.

About 79% of the loans in the collateral pool were made to borrowers without full documentation, while 34% of the loans in the pool were underwritten to bank statements.

The move builds on the government-sponsored enterprise’s previous program that facilitated the collection of more rent payment records from tenants who work with its multifamily borrowers.

SESAC Finance, Series 2022-1, will add collateral related to collections from Audio Network, a production music company that SESAC bought in July 2021.

The Tokyo-based company has named Masatoshi Komoriya executive chairman of the board of directors for MUFG Americas Holdings Corp. and its U.S. banking subsidiary. He begins his new role on June 30 while retaining existing executive duties.