John S. Hintze

Offshoot of well-known European asset manager taps JP Morgan to structure deal

New arrivals to the ABS market seek investors in less than stellar-rated bonds.

Top banks are underwriting the deal, but most of the securitization's loans lack documentation.

Aggregator counters the risk of loans' low starting rate with a strong borrower profile.

The new deal will increase the sponsor's 2024 issuance to more than $3 billion.

The second-lien loans face low recovery post-default, especially if home prices drop.

Fitch describes the Goldman-arranged CLO as similar to Blackstone's Lewey Park CLO, which closed last month.

More than 90% of the loans were underwritten without full documentation, raising default probability.

Top retail-mall owner Taubman has approached the market with a $1 billion CMBS deal to refinance the existing debt that is collateralized by one of the highest volume shopping centers in the U.S.

Amid challenging times for loans in CLOs, Sculptor Capital Management sees refi and reset surge likely to continue well into 2025.