FCAT 2023-1 has a stronger collateral pool composition than a recent transaction, with a lower concentration of loans from indirect origination sources.

Junior notes in the three-tranche structure could receive certain regular principal payments before more senior notes, under certain conditions.

Repo markets and the bank deposit business, in particular, would be upended if the U.S. were to default on its debt, experts say.

Initially, the notes have 25.50% of over-collateralization (OC) of the initial pool balance, and that is expected to build to a target OC level of 35.00%.

Accounts that were one- to 30 days past due have a delinquency rate of 3.50%. Delinquencies rates dropped noticeably with longer timelines.

The notes benefit from a cash-trapping DSCR threshold, a cash trap reserve account and a rapid amortization event.

The card network sees digital payment opportunities and upside from China's reopening, but inflation and the slower pace of travel spending could slow growth.

But several recent news developments are creating the perception that the risk of a recession is on the wane and that could end the downward pressure on rates.

But late borrower payments slightly grew in November, with 18 metro areas reporting an increase, up from six metro areas in October, CoreLogic's report found.

The facilities FCCF Warehouse Trust 2018-1, FCCF Funding Trust 2018-1, Nelnet Loan Seller and CS Loan Seller will sell loans into the transaction.

Mortgage prepayment rates also fell to a new low for the third consecutive month in December, according to Black Knight.

The sponsor, Byrider Finance, had refined its proprietary underwriting system in Q4 2021, after noticing performance issues in that year's vintage.