Series 2022-1 is under the structure of a master trust, and can issue additional notes. Class A notes will amortize to an LTV ratio of about 71.0%, in about seven years.

RAC Asset Holdings, a related entity, has been purchasing older vehicles with more mileage, and spent more on reconditioning, to make up for the squeeze on supply of vehicles.

The credit card issuer fielded questions about its fees two days after the Consumer Financial Protection Bureau announced a wide-ranging review of consumer charges. Executives said they would not take a big revenue hit even in the face of new limits.

In addition to hinting at a March rate hike, the central bank this week announced an intention to have Treasury securities make up a greater share of its holdings, which has implications for securitized home loans.

Store counts and systemwide sales could expand further, and soon; in December 2021 the company announced its intentions to acquire Del Taco for $575 million.

The asset-backed-security (ABS) market should be “largely stable” in 2022, but the prolonged COVID-19 pandemic, coupled with inflation, may hurt segments of the sector, structured finance experts at Fitch Ratings said at a recent conference.

Pagaya AI Debt Trust, 2022-1, or PAID 2022-1, will be Pagaya Structure’s first publicly rated securitization.

And a recent slowdown in government-backed loan issuance is pushing average purchase amounts to another record high.

Performing and re-performing loans are in the pool, as well as fixed, adjustable-rate and step-rate loans, and fully-amortizing balloon and interest-only mortgages.

In a transaction that is expandable, Kapitus Asset Securitization will be able to periodically issue additional notes up to a maximum of $600 million.

Collateral characteristics are slightly weaker than previous deals, due to a higher proportion of loans underwritten to alternative income documentation.

Office properties account for 60.8% of the pool, above the 41.2% average for 2020 deals, and above the 36.5% average for 2021.