MBS

Credit enhancement ranges from 15.0% on the super senior notes to 0.70% on the B4 note, among the subordinate tranches.

Spreads for Fannie Mae current coupon mortgage bonds, a proxy for securities being created now, jumped 0.07 percentage point to 1.41 percentage point, on track for the most widening in a day since April.

The deal brings Kiavi's half-year issuance to almost $1 billion, and after selling all its offered notes, was open to potentially selling rated RTL securitizations in future offerings.

Amid the housing market's challenges, the pool still has borrowers with strong credit profiles, including a 48% debt-to-income (DTI) ratio, and low leverage of 63%, for a sustainable loan-to-value ratio.

Fitch Ratings views home price values in the non-prime mortgage pool as being 11.3% above a long-term sustainable level.

Fitch Ratings views home price values in the non-prime mortgage pool as being 11.1% above a long-term sustainable level.

The trust's sixth issue of the year is backed by higher-income borrowers.

The collateral is a single loan secured by first-priority mortgages in a pool of 2,070 single-family homes.

Home price appreciation and favorable economic factors have led to consistent loan performance, but prepayments are increasing with an uptick in housing turnover, according to Morningstar DBRS.

Pricing guidance on the deal puts yields on the AAA notes at 5.9% and they range to 9.1% on the B- notes, and all of the certificates are priced over the three-month interpolated yield curve.