Esoteric

For the first time in five years, MassMutual has a second securitization within a calendar year backed by loans and leases to large corporates, including federal government agencies.

The deal, DLL Securitization Trust 2017-A, is unusual in that it is backed almost entirely by agricultural equipment; other lessors such as CNH and John Deere securitize a mix of agricultural and construction equipment.

The $480 million transaction is backed by 19 primarily narrowbody aircraft with a weighted average life of 7.2 years on lease to 17 lessees located in 14 countries.

The $300 million deal is a first for the Swedish manufacturer. Nissan also plans to issue as much as $1.25 billion of retail auto dealer floorplan notes.

In addition to insurance premiums, borrowers in the pool use the loans for annual membership fees of sport or leisure facilities or professional bodies.

While the company still relies heavily on sales of solar panels, these purchases are now funded by third-party lenders, rather than in-house.

The latest deal features slightly higher exposure to Florida, where Renew has not been operating as long as it has in California.

The $369.38 billion offering brings total issuance under the Long Island Power Authority's current authorization to $4.5 billion. It is funded by an additional restructuring charge levied on residential customers.

The $605.5 million transaction is notable for its exposure to turboprops, which are noisy and uncomfortable, but can be more fuel efficient on shorter flights, and to emerging markets.

Moody's notes that the practice masks the actual performance of the equipment lessor's recent securitizations; the rating agency has increased its expectation for cumulative net losses on the latest deal by 25 basis points, to 2.75%.