Glen Fest

A decline in average FICO and recent loss levels in AmeriCredit's securitizations prompts Moody's to project slightly higher credit losses in the new transaction compared to previous rated deals.

The $1.11 billion Ally Auto Receivables Trust (AART) 2019-2 deal has three classes of senior term notes with early AAA ratings by S&P Global Ratings and Fitch Ratings.

Massage Envy, a nationwide franchise of nearly 1,200 spa and massage therapy service locations, is turning to whole business securitization to refinance debt and fund a distribution to its private equity sponsors.

Few changes were made from Verizon Wireless' previous transaction this year, including the standard credit enhancement levels of most of Verizon's recent DPP transactions.

KKR is sponsoring its first middle-market CLO transaction stemming from its direct lending partnership established last year with FS Investments, according to presale reports.

The investment research firm plans to merge DBRS' ratings business with its existing Morningstar Credit Ratings Service.

The collateral will include $147.3 million in well-seasoned loans that were part of HESAA’s 2009 issuance, as well as up to $155 million in new loans that the trust will originate through an Oct. 31, 2020 prefunding and recycling period for the next academic calendar year.

S&P Global Ratings reports that cumulative loss levels on collateralized portfolios of subprime auto loans fell to 7.11% in March, compared to 8.67% in February. That figure was also down from 7.61% in March 2018, and the lowest since 2016.

The two agencies offer fundamentally different views of the level of risk in ABS issuances by Avant, Prosper Marketplace, LendingClub and other online lenders.

Kroll Bond Rating Agency assigned the AAA to HERO Funding 2018-1 due to higher-than-expected prepayment rates on residential PACE levies.

Kubota Credit Corp.’s $800 million asset-backed transaction is not expected to generate any additional losses than forecast for the finance company’s previous ABS in 2018, according to presale reports.

The transaction involves 14,337 leases and power-purchase agreements that financed photovolatic solar-panel installations in 13 states plus Guam and the District of Columbia.

A Davis & Gilbert poll of market participants showed more expect delinquencies over the next one to two years, likely requiring credit enhancement in future deals.

The $403.1 million Atlas Senior Loan Fund XIV will have seven classes of notes, as well as a combination securities tranche that will make up all or portions of three subordinate classes.

The Lineage Logistics transaction is the largest single-borrower, large-loan deal since the Blackstone Group tapped the CMBS market for a $2.5 billion single-loan deal backed by 169 industrial properties and two data centers.

The increase in investor scrutiny of managers like Värde Partners is building up as more firms are issuing actively managed pools of short-term CRE loans.

The $161.5 million transaction backed by leasehold interests in the Jimmy Buffett-themed luxury hotel will include a $49.3M cash-out payment to the Denver-based PE firm.

The company has struggled with flat store sales as well as an open revolt from its largest franchisee group that has called for new ownership and management of the 21-state regional chain.

Proceeds from the new deal will pay down nearly $1.3 billion in outstanding debt from parent company Dine Brands Global's two prior securitizations.

Both transactions are the second this year for each of the automotive captive-finance firms, and will build on a tally of 19 prime auto loan ABS pools to date this year totaling $21.44 billion.