Angel Oak was able to secure triple-A credit ratings for its next offering of nonprime residential mortgage bonds, despite offering considerably less credit enhancement.

Both DBRS and S&P Global Ratings expect to assign triple-A ratings to the senior tranche of AOMT 2017-2, which benefits from 37.75% credit enhancement. That’s significantly less than the 46.65% on the senior trance of a deal completed in March, which was also rated by DBRS.

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