Despite a number of weaknesses, the bonds will benefit from a senior liquidity reserve account of $167.5 million and a subordinate liquidity reserve account of $20.5 million.

Most of the deals are FFELP loans, but the sponsor and servicer entity is considered a financially weak company.

However, capacity issues, the suspension of the government-sponsored enterprise purchase caps and higher conforming limits all could affect activity, KBRA said.

Moody’s steps in to provide a higher rating on the Class B portion of the COVID-hardened deal.

After Democrats failed last year to rally support for a federal 36% limit, House and Senate proponents are trying to capitalize on the momentum from state rate caps that recently passed on a bipartisan basis.

The deal’s sponsor has issued a small rated portion to investors and sold the remainder back to loan-originator.

The sponsors got the portfolio through multiple acquisitions from May through October.

The loan pool’s volatility score is high but its diversity of properties is a plus.

The sponsor’s Fortune 500 parent provides comfort in the face of the subprime-auto industry’s woes.

The sponsor’s strong track record mitigates risks, including “dirty current” loans and low FICO scores.

Robust salaries are a plus, but concentrating loans in a few well-paying fields presents different risks.

The auto-lease and nonprime-auto sectors are fueling what likely will be record volume.