Donna M. Mitchell

Non-QM assets overlap almost perfectly with the portion of loans, 52%, financing properties where the borrower intends to maintain as a primary residence.

Sharkey counsels CLO managers, investors and arrangers on warehouse financings, collateral fund obligations, CLO business acquisitions and portfolio sales.

UPST 2022-1 is one of the smallest transactions yet from the platform, with a pool balance of $503 million at its cutoff date, compared with recent deals.

Both the consumer and small business segments derive much of their receivables from accounts with high FICO scores and strong full repayment habits.

CRVNA 2022-P1 has a collateral pool with annual gross excess spread of 3.41%, compared 5.6% with from the 2021-P4 deal, due to the lower collateral interest rate.

Among the transaction’s strengths is the State of Texas Public Utility Regulatory Act, and the Public Utility’s Commission of Texas’s irrevocable financing order.

The initial principal balance could be $1.3 billion or $1.6 billion, and the pool has other characteristics that raise caution compared with the 2022-1 deal.

Oportun provides financing to borrowers with a lack of an established credit history or who are underserved by traditional, mainstream financial institutions.

Reporting to Tricia Hazelwood, who is head of international head of securitized products, Badrakhan will head up MUFG’s U.S. esoteric ABS business.

A majority of the loans, 63.5%, were designated as non-QM loans, and about 36.5% of the loans in the pool are made to investors for business purposes.

The term note maturity is also relatively short, and has a scheduled amortization term, which KBRA considers to be a credit strength.

Despite relatively stable performances for the majority of the pool since the previous rating action, concerns remain about the pool’s high exposure to the two loans.

Self-employed borrowers accounted for 29.8% of the pool, while loans with co-borrowers and multiple borrowers accounted for 39.9% and 9.8%, respectively.

While the deal is varied by obligor, Moody’s noted that KCOT 2022-1’s high concentration of construction equipment types is a potential challenge.

Power supply and distribution customers are virtually identical, but the trust will not cross-collateralize the two revenue streams to service the debt.

Franchises, which account for 98% of Jimmy John’s restaurants, provides the business with more stable cash flows than companies with lower franchise levels.

Edward "Jay" Southgate will represent financial institutions, issuers and underwriters in deals such as private placements of asset-backed securities and residential MBS.

All of the properties are income producing. The average home is 23 years old, while rehab costs account for about 3.9% of the homes’ purchase prices.

The reserve account, which will mitigate the likelihood of a shortfall and assist with the subsequent distribution of interest during the controlled accumulation period.

Underpinning the notes are two special units of beneficial interest in leases owned by an origination trust, issuer’s rights under any letters of credit.