Finance

The transaction will issue about 10 classes of notes, composed of one term bond and nine serial bonds.

The company took a break from securitization during the first quarter but was able to get a deal done shortly after the fiscal period ended.

Indexed to the one-month, I-Curve, yields are expected to range from 4.60% on the A1+ rated, A1 notes to 6.22% on the BBB-rated, class D notes.

The labor market continues to cool gradually, a sign that businesses facing heightened uncertainty and turmoil didn't significantly alter their hiring plans.

The rating agency said 82 of the 114 loans, representing 76.4% of the portfolio's value, have final balloon payments.

Southern Auto Finance uses a heavily automated origination process that puts applicants through several rounds of vetting, including income and employment verification.

At any point during the revolving period, the issuer might upsize the current notes to a $500 million limit.

The deal taps into insurers' growing demand for long-dated private credit investments. More than a dozen investors, are set to participate in the transaction.

The collateral's annual percentage rate, loan-to-value and debt-to-income rates all decreased compared to the PART 2024-2 transaction.

Among its structural strengths, DEFT 2025-1 includes a non-declining reserve account representing 1.0% of the pool balance.