Donna M. Mitchell

The United Auto 2025-1 series of notes has a more mixed subordination element compared with the previous deal.

Tax liens have so-called super priority in repayments, even placing ahead of a previously filed mortgage.

A set of performance-related triggers—cash trapping and expense reserve—will help maintain cash flow to the notes.

Full documentation accounts for a little over a third of the pool, but otherwise FICO scores are high, as are weighted average liquid reserves.

From the Q3 2021 to the early 2024 vintages, cumulative gross loss (CGL) levels had been trending up, likely due to consumer credit normalizing, due to inflationary pressures.

GM Financial Revolving Receivables Trust, 2025-1 has a five-year-long revolving period, risking exposure to assets with longer terms.

Fitch notes that 74.8% of the collateral pool, made up entirely of 3,103 loans, is backed by trucking—or transportation—equipment.

The fund closes ahead of separate news that it formed the Private Real Estate Credit platform, which will originate senior and subordinated commercial real estate loans.

It is the program's second issuance to come to market with a pool made up entirely of consumer loans.

Excess cash flow will pay timely interest and protect against realized losses in the rated certificates before being paid out to the class X notes.

The deal also offers a subordination piece that represents 14% of the pool balance, helping to boost the credit to the notes.

Total delinquencies as a percentage of John Deere's managed portfolio was 3.06%, an increase since 2022. That aligns with the decline in corn and soy prices in the same period.

There is also a trigger embedded in the deal, attached to cumulative net losses that would set off a full turbo payment.

Investment properties are the primary properties backing the collateral pool, at 80.3%, while second homes account for 19.7% of the pool.

Amortization will start after the deal's two-year revolving period, when the trust will deposit revenue including collections and upgrades into the acquisition account.

Affirm grade A loans account for 34.8% of the pool and have historically produced the lowest defaults in the sponsor's managed portfolios.

Tricon's pool had 49 vacant properties, which translated to a 3.4% vacancy rate in the pool, lower than the average 6.0% in KBRA's comparison set of 24 deals.

Small-balance commercial mortgages, SBA 504 and investor loans, all first-lien, make up the collateral pool.

The current pool has smaller exposures to the construction and turf sectors compared to the 2024-2 series, which have seen higher loss rates than the agriculture sector.

Loan modifications and expenses have reduced available interest and net weighted average coupon (WAC) rates in the deal.