Finance

A big part of the outreach is to clearly distinguish Regulation AB asset-backed securities from Exchange Act ABS, especially as new issuers and investors enter the market.

Soal is joining as a managing director in charge of SRT origination, having been a director at BMO's risk & capital solutions desk.

The partnership centers on a master purchase agreement for a portfolio of mortgage servicing rights that the real estate investment trust is buying.

Proceeds will cover storm restoration costs stemming from a series of severe storms, including hurricanes Helene in 2024, Ian and Zeta in 2020, and winter storm Izzy in 2022.

As the deal's servicer, GLS is considered less able to mitigate non-collateral risks on behalf of securitization bondholders, it is still experienced, with more than 35 ABS deals.

The biggest portion of the transaction, the $290 million of class A-1 bonds rated Aaa, were sold to yield 1.33% more than their Secured Overnight Financing Rate benchmark.

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

Almost all the mortgages were written through alternative income documentation, primarily for investment properties, and the entire pool benefits from third-party due diligence.

Performance in recent vintages of Tesla leases, specifically 2024, had weakened recently, leading to increased credit loss expectation for the deal by 0.75%.

But even if global financial crisis 2.0 doesn't come, investors may well be in for a rough ride in the coming months as frothy financial markets come to terms with a cyclical slowdown.