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.

Loans located in the 2A market tier accounted for the highest concentration of loans in the pool, at 33.6%.

The use of the Federal Reserve's emergency lending facilities was largely unchanged this week, indicating to some that the recent liquidity crisis isn't getting any worse.

The economic situation is more like what happened during the mid-'80s thrift crisis than the 2008 downturn, said Chief Economist Doug Duncan.

A federal appeals court ruled in favor of the Consumer Financial Protection Bureau, setting up a court split ahead of a highly anticipated Supreme Court hearing in October. The Fifth Circuit previously ruled that the agency's funding mechanism violates the Constitution's separation of powers doctrine.

The agency, which oversees government-related investors that set underwriting parameters in the U.S. mortgage market, estimates the process will begin in 2024.

The current deal is a follow-up from a master trust that floated $1.2 billion in notes last September, and will repay the notes sequentially.

Financial tightening stemming from two recent bank collapses has served as its own check on inflation, according to Federal Reserve Chair Jerome Powell. He said the relatively small rate hike announced Wednesday was not the result of financial stability concerns.