Capital One is roadshowing its first ever senior/subordinated non-prime auto deal this week, a Capital One official confirmed. The transaction will be led by Citigroup Global Markets and Wachovia Securities and will be structured down to the triple-B level. The official said the deal is expected to hit the market next week, but was unable to comment on the deal's size.
Aspire will raise $468.8 million from a pool of 917 residential mortgages, which are primarily fixed-rate.
The government-sponsored enterprise has provided language that servicers may utilize in situations involving temporary interest-rate buydowns.
The transaction structure includes an interest reserve account on the senior notes, tranche 2026-A1 VFN.
The government-related market's push has intensified efforts to draw up classic FICO comparisons or set up interim rating policies pending more data.
CEO Lynn Harton said his Greenville, South Carolina-based bank struggled the past year to keep Navitas from overshooting the limit the bank set for its expanding portfolio, about 10% of total loans.
The construction and building sector raises the most concern, but issues should remain manageable.
