The synthetic securitization leaves the assets on Deutsche Bank's portfolio—the originator and arranger—making the investor syndicate a critical risk counterparty.

This is the program's third transaction, according to ASR's deal database. The notes have about 8.57% in credit support for all five tranches, which are all class A notes.

The end-of-year slowdown comes after a recent fall surge, but overall activity still finished 6% below late 2022 levels, according to the Mortgage Bankers Association.

The trust distributes scheduled principal on a pro rata basis. There is also a specified lockout period during which the subordinate classes do not receive any unscheduled principal.

The delinquency rate that Kroll Bond Rating Agency tracks improved last month but JER's recent Chapter 11 filing and 2024 forecasts suggest it's still under pressure.

The segment demonstrated sustained resilience in the third quarter, growing its share of the market each month amid rate volatility, according to Corelogic.

For the most part the underlying loans have very low default rates. Almost the entire pool, 91.8%, is clean current, and appear to have performed well into the period where they were expected to experience greater losses.

Fitch expects to assign AAA to the class A notes.

The transaction is collateralized by at least 95% senior secured loans, cash, and eligible investments, S&P says.

A diversified pool of buyout funds secures $500 million of class A notes issued by White Rose CFO 2023 Holdings.

The pool has lower leverage compared to recent multi-borrower transactions rated by Fitch Ratings.

But the decline may be close to its floor, as wide spreads compared to 10-year Treasury yields hinder how far averages could fall.