Some sponsors are selling only AAA or investment grade ABS and retaining the riskier assets, as one way to cope with escalating interest rates.

More congressional scrutiny is being directed at the San Francisco Federal Reserve bank and its role in supervising Silicon Valley Bank.

HART 2023-A has a yield supplement overcollateralization amount (YSOA) of 10.11% as a percentage of the aggregate pool amount of $1.4 billion. It was 10.76% on HART 2022-C.

The rules President Joe Biden calls for include minimizing the financial burden that replenishing the Deposit Insurance Fund would impose on community banks.

However, the benchmark 10-year Treasury yield pushed back up 15 basis points from a week ago as the markets settle following the recent bank failures.

The year-over-year drop in January stemmed primarily from loans where a payment had not been made in at least 120 days but shorter-term arrears were higher during the same period.

Jelena McWilliams, who chaired the agency during the Trump administration, said removing the cap on insured deposits would impact the banking sector in three key ways.

Top obligors in the 2023-1 transaction also have higher credit quality, with three of the top four obligors having investment grade credit quality, compared with only one top obligor from the 2021-1 deal.

The latest AESOP includes medium- and heavy-duty trucks, plus different minimum depreciation rates of non-program vehicles (NPVs) to account for their market values.

The overall credit picture is mixed in the Golden Credit program, which demonstrated higher net chargeoffs of 1.71% in the February collection period, up noticeably from 1.30% a year before.

Compared with previous deals, Kubota Credit 2023-1's collateral pool is only slightly less diversified, both in terms of obligor concentrations and the equipment mix.

Deal supply remains relatively strong in the sector, but new originations still face a scarcity of new assets to roll into the deals.