Donna M. Mitchell

Borrowers had been in business for a WA 14 years, an average credit score of 708, and the assets had calculated receivables yield of 38.9%.

The entire pool adheres to full documentation origination and they qualify as safe-harbor qualified mortgage, with FICO scores of 764.

ARI has increased hard credit enhancement compared with previous transactions, however, which helps to the potential risk of offset negative excess spread.

HPEFS 2023-1, will benefit from a 1% reserve account, and 7.40% initial overcollateralization. A cash reserve account provides liquidity to the notes.

The pending transaction has a class D, unlike the previous transaction, the Santander Drive Auto Receivables Trust, 2023-1, and a higher cumulative net loss expectation.

Moody's notes that obligors that are large enterprises or public institutions make up 82% of the discounted receivables balance.

One enhancement to the notes, however, is a $55 million credit insurance policy from AIG Europe that covers the Rosy Blue Carat receivables.

Subordination levels for classes A, B and C are 38.12%, 20.84%, and 0%, respectively, down from previous levels of 47.63%, 33.68% and 18.18%.

When the deal closes the notes will have an overcollateralization level of 5.75%, which will increase to a target of 14.75%.

PFS Financing Corp., 2023-A's collateral pool is fairly diversified along the lines of property and casualty insurance carriers that contribute loans to the pool.

The deal has an exposure to fixed-to-floating interest rate risk. While 75%-88% of the total notes are fixed rate, while just 57% of the underlying assets are.

Stack will finance turnkey and powered shell data centers that have relatively long contract terms, with a weighted average (WA) 6.6 years remaining.

NextGear reduced the recreational vehicle and daily rentals maximum, while increasing the maximum concentration of heavy-duty trucks and salvage vehicles.

CCG has total initial hard credit enhancement of 17.0%, 12.5% and 7.0% on the classes A, B and C notes, respectively, and annual excess spread is about 4.68%.

SEMT 2023-2 shifted some of its underwriting from traditional full documentation to agency underwriting, with the latter accounting for 14.1% of the pool balance.

As of December 2022, improvements contributed about $15.4 million in incremental rental income, plus more than $310 million of additional sales volume.

Some 69.1% of the underlying mortgages are closed-end second (CES), fixed-rate residential mortgage loans, while 30.9% are HELOC, adjustable-rate loans.

The notes will be issued from a multi-tier debt service coverage ratio (DSCR) and a payment-in-kind (PIK) feature for class E-1, class E-2 and class F notes.

The unguaranteed loans are secured by one or more first-lien commercial real estate loans. The notes have a break-even default rate cushion of 2.39%.

AFG ABS will repay the notes on a sequential-pro rata basis, and classes A-1 and A-2 will repay note interest on a pro rata basis.