Donna M. Mitchell

Despite the auto sector's resilience in recent economic quarters amid the pandemic, observers remain watchful of employment trends and waning government help.

For the current transaction, excess spread is at about 5.65% annually, which is in line with the 5.8% in the 2021-NR series of notes.

Used autos are in high demand, because the COVID-19 pandemic caused production delays that constrained the supply of new vehicles to the market.

After its founding in February 2012, the company has come to market 25 previous times for capital to support its business.

While the underlying pool of student loans is mixed, 96% of them are non-rehabilitated loans.

World Omni Auto Receivables Trust continues to focus solely on Toyota models, and has the potential to issue up to $1.1 billion in notes.

DriveTime extends financing to borrowers who have subprime credit profiles, generally with limited credit histories, modest incomes or prior credit difficulties.

Borrowers in the deal have a weighted average (WA) credit score of 722, have a DSCR of 1.39x and a weighted average loan-to-value (LTV) 71.7%.

Starting out as a consumer lender in 2012, Plenti began to make auto loans through its proprietary platform in 2017 and also offers peer-to-peer lending access.

The trust scales back on its office concentration, and increases multifamily and retail exposure. The latter's concentration is higher than all YTD averages since 2019.

Expanded prime and non-prime mortgages underpin the pool in the deal, issuing $459.8 million in notes.

Similar to other CLOs, Golub 54 has a reinvestment period of four years, with a two-year non-callable period.

Toyota had granted payment deferrals up to 120 days to eligible borrowers during the pandemic, and then resumed old deferral practices as of June 30, 2020.

The 10 largest loans in the deal have high balances, ranging from $2 million to $2.9 million, and California represents half of it’s geographic concentration.

RFS Asset Securitization could issue additional notes, up to $500 million, at any time during the revolving period, which could be as soon as June 2024.

Industry observers say they expect current market conditions to support healthy deal flow through the end of 2021.

In a deal underwritten by RBC, the initial note balance could either be $1.2 billion or $1.7 billion, depending on market conditions at the time of pricing.

Most of the pool, 63.7%, consists of new agricultural equipment, followed by new construction equipment and new turf equipment.

While the underlying pool of loans is of strong credit duality, concerns abound about how COVID’s economic impact could negatively affect pool performance.

The survey results signal a greater willingness on the part of portfolio managers to carry or add additional credit risk to their portfolios.