Esoteric

Spread premiums on esoteric ABS attract new types of investors, including those managing insurers' assets.

Jamaica's cat bond success could spur issuer and investor interest in the product, putting Beryl's failure to trigger any compensation in the past.

AMDR 2025-1 is the inaugural securitization for Americor, an Irvine, Calif.-based which offers debt resolution services, personal loans, debt resolution loans, mortgages and home equity lines of credit.

Karsten Giesecke and Michael Karol join Morriello to represent clients such as lenders and private equity funds in transactions including RMBS, CMBS, franchise loans and esoteric assets.

The deal involves a two-year revolving period, and during that time principal proceeds can be reinvested into newly originated collateral.

The structure includes cash trap and sweep conditions, plus subordination that helps ensure cashflow to the notes.

There's just one catch. Investors are embracing the securitizations backed by crops, and other farm assets, faster than farmers.

The deal features a full turbo amortization structure, where all collections will be applied to amortize the bond principal. No cash will be paid to the sponsor until the bonds are paid in full.

Notes are expected to pay a coupon of about 2.5% over the Swiss Average Rate Overnight (SARON) with an expected maturity of seven years.