In last week's ABS Market roundup, the price guidance for the single-A rated B class of the Susquehanna auto-lease ABS was incorrectly reported as being in the 100 basis point area over one-month Libor. Guidance was actually set in the mid-100 basis point area, therefore the final pricing spread of 145 basis points was actually inside of initial talk.
The senior notes will build hard credit enhancement levels over time because classes B through G will be locked out of principal payments for eight months.
The home purchase market, which competes for consumers with rentals, should remain subdued in 2026 because of high mortgage rates and low affordability.
Federal Reserve Gov. Stephen Miran said higher goods prices could be the trade-off for bolstering national security and addressing geo-economic risks.
The industry expects resilient market conditions and fewer defaults, plus cheaper financing that supports M&A activity and more CLO issuance in 2026.
After home equity surged in 2023, average gains slowed last year before falling into negative territory over the past 12 months, Cotality said.
The deal includes debt service coverage ratio (DSCR) triggers, where a cash trap event will occur on any payment date if the DSCR falls below 1.15x.
