Donna M. Mitchell

The moderate leverage reflects the quality of RMBS pools from recent issuance years. Borrowers have a non-zero WA annual income of $1 million, with liquid reserves of $594,348.

The deal amplifies Janus' existing model portfolios and separately managed account offerings and positions the firm to be a leader in that area.

The deal includes some structural changes, such as subordination levels of 41.05%, 32.25%, 19.45% and 6.10% on classes A, B, C and D, respectively, and all those levels increased from the previous deal.

The notes will benefit from a reserve account, to be funded unless a default event occurs, and the transaction will deposit an amount equal to interest due on the class RR notes.

NewtekOne offers 10- to 25-year amortizing loans with no balloons, and either limited or no covenants, and other provisions similar to SBA 7(a) loans.

A reserve account is in place, although its percentage of the pool balance decreased compared with the previous deal. Also, pre-pricing excess spread was 13.89%.

Despite RCKT Mortgage's second-lien composition, the loans display several positive credit characteristics, including a WA credit score of 745.

The centers are also located in 15 markets, with the largest market accounting for 20.3% of the pool's annualized revenue.

By aircraft value, Fitch says 6% are leased to credits considered investment grade, while the weighted average rating by Fitch Value ranges between 'B' and 'B-'.

The notes are expected to pay coupons of 4.94% on notes in the A1FCF tranche, rated AAA from KBRA and Fitch Ratings, to 6.78% on the B1 notes.

The loan is expected to have an initial term of two years, with the potential three, 12-month extensions.

Transactions from 2024 are performing better than deals issued in 2023, and deals from 2025 and 2024 are performing well with in expectations.

Underwriting relied on full documentation in keeping with Ability-to-Pay rules, and all the loans received a third-party due-diligence review.

Express Settlement Loans, or E-Loans, extended to customers enrolled in a debt relief program, and Consolidation Loans, or C-Loans, for more qualified borrowers are in the pool.

The true-up mechanism is charged annually, but can be paid more frequently to ensure notes make timely payment of principal and interest of the 2025 revenue bonds and related financing costs.

Sponsored by American Water, the deal funds service contracts on HVAC, plumbing and external water lines.

The deal comes to market as President Trump suggested barring institutional buyers from snatching up single-family homes, the type of properties secure the bulk of SEMT 2026-INV1.

ODF II will focus on originating senior and junior commercial rea estate debt investments across major U.S. markets, focused on multifamily properties.

While Westlake's customer accounts usually have credit bureau scores ranging from 500 to 700, the WLAKE 2026-1 collateral pool's non-zero weighted average credit bureau score was 620.

Largely strong credit qualities were offset because by loans on single-family homes in the pool dropping by 0.5%, and that the percentage of loans that received due diligence decreased by 0.4%.