Donna M. Mitchell

The A2B notes in TAOT 2025-A will make up 75% of total class A2 notes, a much higher percentage of floating-rate A2B notes than recent deals.

Agency underwritten loans accounted for 97.1% of the CMLTI 2025-1 pool, up drastically from 10.6% on the CMLTI 2024-1 series.

In a few notable changes from the 2024-1 deal, 0.73% of the current pool is composed of closed-end leases, an increase from 0.55%.

The class A1 notes have the lowest cumulative advance rate, which combines the interest and mortgage insurance rates to show the monthly increase in the line of credit, at 95.5%.

Initial hard credit enhancement, based on a Pv6 securitization share of ADSAB is 27.8%, higher than the 18.7% on the Sunrun 2024-3 transaction.

The obligors' non-investment grade credit quality could present challenges to the timely repayment of notes. Yet PREF focused on high-revenue obligors backed by private equity sponsors.

Just 2.15% of the loans in the pool financed properties in Los Angeles County, and the surrounding areas that have been impacted by the recent wildfires.

Outstanding loans eligible for repossession in December 2022 saw a 22.5% increase from December 2019, but redemptions were higher than pre-pandemic levels.

The portfolio is composed of 743 first-lien, fixed- and adjustable-rate, fully amortizing mortgages to borrowers with prime and non-prime credit. Most of the mortgages, 70.3%, are for home purchases.

Obligors are slightly more concentrated but the percentage of obligors in higher credit quality grades—2 through 5—increased to 56.9%, from 41.3% from the previous deal.

Despite Exeter's experience, it has low durability as a servicer. This puts its default probability in the unknown.

Proceeds from principal can be used to make up for shortfalls to the notes, but those shortfalls on the class A2 and subordinate bonds will not be paid from principal proceeds until the senior classes are retired.

The agency wants the National Collegiate Student Loan Trusts, which sell student loan asset-backed securities (ABS) to investors, to pay $2.25 million in fines to borrowers.

KBRA notes that commercial obligors with an investment grade rating make up 76% of MassMutual's customer base. Within that group, payments from the U.S. government account for 14.4%, the largest concentration.

ODART 2025-1 will be the first transaction from the program that will include loans originated through OneMain Foursight, the lending unit that was formed when OneMain bought Foursight Capital from Jefferies Financial Group.

Island is a first-time issuer and largely originates and services the loans through its network of 48 branches.

Notes will be repaid through a sequential pay structure that will require principal to be repaid in full to the class A1 notes.

The $1 billion deal included classes A-L-A and A-L-B were offered as loans.

The inaugural deal is expected to close by the end of the month. Among its structural features are cash trap and cash sweep provisions.

The prime pool can be upsized to $1.7 billion, and the base pool amount has a lower securitization discount rate of 9.60%, lower than the previous deal from this program.