Finance

Subprime auto loan borrowers are increasingly falling behind on payments, and the value of used cars is dropping, two trends that are clobbering bonds tied to the debt.

Virtually the entire pool is financing used cars. Even that might leave the pool vulnerable to reduced recovery costs, should prices for used cars drop notably.

The company is floating the possibility of selling a portion of its loan portfolio to free up liquidity in coming months, leaders said.

The alchemists of Wall Street came up with a solution for investors who needed fatter yields: complex products that spun extra basis points out of markets.

The government-sponsored enterprise put more money aside as mortgage interest rates rise and home prices start to decline.

Based on the securitized utility tariff property, the security of the notes will depend on the number of customers in the utility's service area.

Aside from equipment leases, the collateral will include interest certificates and equity interests in entities formed to own aircraft leases and related aircraft.

The dollar resumed declines on Monday in New York amid a rebound in U.S. equities and other risk assets ahead of inflation data and the mid-terms elections.

The CLO is preparing to raise $494.5 million from the capital markets, with a reinvestment period of 2.9 years, and a a weighted average (WA) recovery assumption of 77.03%.

The company's volume fell behind its wholesale-focused chief competitor's in the third quarter but management foresees potential weakness in the broker channel.

It said just over $1.2 billion of dollar notes had so far been accepted for purchase with six days still remaining for investors to sell back their holdings.

Should Libor become unavailable most CLO loans are already written to fall back to the prime rate. Managers will have to monitor their CLOs' legacy Libor loans.

The percentage of extended-term loans, 80.9%, is near the higher end in recent historical deals, but higher FICO scores are also a bigger portion of the pool.

Wednesday afternoon was full of drama as traders first took hope from the central bank's statement but then slumped following stern comments by Chair Jerome Powell.

Pagaya Structured Products had begun acquiring loans underwritten to tighter underwriting standards—especially among higher-risk borrower segments—in fall 2021.

Credit Suisse Group AG's long-term rating was downgraded by S&P Global Ratings to just one level above junk status, underscoring the bank's challenges after it laid out a radical restructuring plan last week.

Ahead of this week's Federal Open Market Committee meeting, where it is expected to enact another large rate hike, 11 lawmakers sent a letter to the central bank, urging it not to go too far.

Sunnova 2022-C shows borrowers with tighter credit qualifications, and initial OC, as a percentage of pool balance, is lower than Sunnova 2022-B's.

Active bond managers are licking their wounds amid this year's historic fixed-income rout and are banking on a big rebound in 2023 to show their worth.

They have a range of positions in the mortgage market; and some investors believe they could be bought at a discount now, potentially gaining value later when interest rate stability returns.