Donna M. Mitchell

While spreads are widening in many cases across asset classes and credit bands, guidance is around 235 basis points over the I-Curve on the 'AAA' notes, a little tighter than 250 bps over the benchmark on the FHF 2022-2 deal.

The notes will accumulate an overcollateralization level of 11.20% of the current collateral balance and benefit from a cash reserve account equaling approximately 1.25% of the initial collateral balance.

When the deal closes, credit enhancement on the class A note will include overcollateralization, which will be 16.3% and is expected to increase to a level of 20% of the current pool balance.

Guidance on the A-1 notes is 38 to 40 basis points over the I-Curve, which is significantly wider than where the class A-1 notes from the 2023-1 deal closed.

The properties have an aggregate critical load power of 65.25 megawatts, and all of the data centers in the portfolio are turnkey, which the rating agency considers positive.

The deal launched from the Achieve platform, bringing Freedom Consumer Credit Fund's cumulative issuances across its securitization portfolios to $4.8 billion.

Analysts have a base-case proxy of 1.2%, accounting for stress in the agricultural sector, which includes higher default levels from the 2006-2009 and 2015-2017 vintages.

Some 74.8% of the loans had original terms greater than 60 months, higher than 68.5% than the FAST 2020.

The current ABS pool is more heavily weighted toward large balances. Accounts with balances of $10,000 or more account for 49.9% of the pool.

NaviRefi loans account for 30% of the collateral securing the Navient Private Education Refi Loan Trust, 2023-A's. It is a noticeably higher amount than the previous deal, the 2022-B, which contained a 21% concentration.

DriveTime is a prolific issuer, but this is the program's second securitization of the year.

Brookfield and partners will take approximately $46.3 million in a cashout, while the loan is interest only for the entire loan term.

New originations amounted to about $64.4 billion through March 31, a 49.7% drop from last year's production by the ASR's estimation.

FNB has an initial redemption value of $106.7 million, lower than the initial redemption value of $118.7 million in the 2021 FNA VI, yet has a higher lien count with 8,352, over 7,286.

On an issuer level, the deal has a WA capitalization rate of 6.33%, WA debt service coverage ratio (DSCR) of 1.89x, and a WA loan-to-value ratio of 52.5%.

The class A-2b tranche can issue floating-rate notes. Should that happen, the YSOA discount rate would step down from 10.30% to 10.05% after the class A-2 notes are paid off.

Moody's had lowered the residual value loss a full percentage point, but did not mention whether it would lower the credit loss expectation.

Initial hard credit enhancement for the class A notes is lower, at 37.30%, because of lower subordination in the deal.

Despite some signs of weaker performance, metrics remain within manageable levels, and credit enhancement appears to be sound.

The five-year notes benefit from overcollateralization equal to 35%, and will use the proceeds to repay a line of credit facility.