Donna M. Mitchell

Lendbuzz appears to be on the upswing, according to KBRA. On a year-to-year basis ending in Q2 2023, originations grew 37.6%, and revenues were up 94.6% from a year ago.

The newest deal from the program could be upsized to $1.6 billion from $1.1 billion, with the structure and pool characteristics remaining the same.

Just one class of variable funding notes (VFN), which have an anticipated repayment date of July 2026, will be issued to investors.

On average the receivables have a balance of $971, a WA average percentage rate of 32.88%, and a WA age of 24 months. Also, cardholders might pay an annual membership of up to $75.

The deal will be secured by payments on subprime auto loans and comes shortly after officer Jill Rockwood joined as chief financial officer.

Equify ABS 2023-1 is expected to close on October 11 and will issue three classes of notes secured by revenue from mid- to large-ticket equipment contracts and related assets.

The deal is the eleventh this year for Pagaya AI Debt Selection Trust, and is slated to close by September 29.

Classes A, B, C and D have hard credit enhancement levels of 5.30%, 3.80%, 2.30% and 0.85%, respectively, higher than that of the CHAOT 2022-A.

The sponsor's assets favor software companies, and the deal brings its total CLO assets under management to $2.2 billion.

Slated to close by September 29, the deal has total initial hard credit enhancement that amounts to 87.7% on the most senior class of notes.

Total hard credit enhancement of 37.45% shore up the class A notes, according to Moody's. In the rest of the deal the classes B, C and D notes benefit from total hard credit enhancement of 33.1%, 23.7% and 13.7%, respectively.

Revenue from agricultural and construction equipment will secure the notes, which get a boost from a spread account and overcollateralization.

Credit enhancement to the class A notes includes a non-declining overcollateralization of 4.75% of the initial adjusted pool balance, and a non-declining reserve fund of 0.25% of the initial adjusted pool balance.

The OCCU 2023-1 transaction will come to market as a 144a transaction, with higher levels of credit enhancement from yield supplement overcollateralization, initial hard credit enhancement and excess spread.

Subordination increased for the class A and class C notes, to 7.04% and 2.10%, respectively, from 7.00% and 1.50%. Meanwhile subordination decreased on the class B notes to 3.80%, from 4.25%.

Backed by revenue from point-of-sale unsecured consumer loans, the upsized deal also features expandable notes.

The transaction's credit enhancement levels are lower than what was seen on the 2023-A pool, but is still strong, and is still high compared with peer transactions.

Tractors make up the vast majority of the vehicles in the pool, 92.5%, while trailers, trucks and buses account for 4.1%, 2.3% and 1.1%, respectively.

Rating agencies say the A, B, C and D notes have about 29.0%, 23.8%, 17.3% and 14.0% in credit enhancement, respectively, while A, B, and C notes enjoy a 15.9%, 10.6% and 4.0% in subordination.

Companies with public ratings from a national recognized rating agency make up 66.9% of the obligors in the pool, and those with an investment-grade rating represent 34.9% of the pool.