Finance

Both series will repay investors through a senior-subordinate, pro rata structure with a locked-out class and a senior enhancement floor to mitigate tail risk and shore up credit support.

Two tranches of class A and B notes will raise $80 million from investors, to support Kalamata's business financing small business loans and merchant cash advances.

One of Callahan's goals is to expand institutional investor relationships, and he joins from Investcorp, where he was a managing director of institutional capital raising for its global credit business.

The amount of deferred loans allowed in the pool is capped at 70%, with at least 96% of them being cosigned. Also, no more than 6% of loans with a FICO score of less than 700 can be cosigned.

Fixed-rate loans account for much of the pool of mortgages, a little more than half of which are financing the purchases of single-family, primary residences.

Used car loans support the notes, where the two class A tranches benefit from 59.90% in total credit enhancements, while classes B, C, D and E have 51.88%, 42.54%, 33.23%, and 26.96% respectively.

The underlying loans have 8.32 months in seasoning, which is higher than the amount seen on Arivo Acceptance securitizations going back to the series 2021-1 deal.

Such structured products would be the latest in a string of innovations that includes everything from debt-for-nature swaps to novel use of carbon offsets.

Revenue from auto dealer floorplan receivables will secure $920.2 million in class A notes from the Nissan Master Owner Trust Receivables, both series 2024-A and 2024-B, according to Moody's Investors Service.

FCAOT, in its first issuance of the year, could upsize the deal to $1.5 billion