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The CEOs of the nation's largest banks met with officials in Washington on Wednesday and Thursday, just two weeks before the government is expected to go broke. Behind the scenes, the banks are reviewing contingencies in case the unthinkable occurs.

Of the leases securing the deal, 99.15% are open-end, while the remaining 0.85% are closed-end. This creates a potential positive because loss assumptions on the former are lower.

Jobs numbers, inflation data and the continued debate over raising the debt ceiling are factors applying upward pressure.

Traders amped up wagers on a June rate increase to about 40% after Fed Bank of Dallas President Lorie Logan said the case for a pause next month is not clear.

Underwriting league tables of asset-backed securities through May 18, 2023

Issuance volume of asset-backed securities for the year through May 18, 2023

The collateral in FortiFi 2021-1 and 2023-1 are similar, In one key difference from Fortifi 2021-1, the current deal has a supplemental reserve account, amounting to $6.2 million.

Community banks tapped the brakes during the first quarter, citing higher interest rates, recession threats and fallout from regional-bank failures. Fed data shows the trend has continued into May, and executives are preaching caution.

CLOs are getting squeezed as funding costs rise relative to the returns on investments. That's making it less attractive for money managers to issue new CLOs.

The pool is also granular and diverse, with the top 13 insurance companies accounting for 28.3% of the pool balance.