Moody's Investors Service will rate the $259 million of student loan ABS notes to be issued by the State of New Jersey's Higher Education Student Assistance Authority (HESAA).
The rating agency has assigned provisional long-term ratings of 'Aa2 (sf)' to the senior student loan revenue bonds, series 2012-1A and 'A2 (sf)' ratings to the subordinate student loan revenue bonds, series 2012-1B.
The deals are backed by private student loans that are not federally guaranteed.
The 90-day-plus delinquency rate on student loans hit 10.3% in the first quarter, and New York Fed researchers warn that a second wave of defaults could be coming. Evidence is mixed regarding the likely impact on other consumer-lending segments.
If principal and interest DSCR falls below 1.75x, then 50% of all excess cash flows will be deposited into the deal's cash trap reserve account.
The Mortgage Bankers Association's Mortgage Credit Availability Index declined 0.4% to 107.9 in April after reaching a three-year high in March.
The underlying asset pool is heavily concentrated in narrowbody aircraft models, mostly A320-200s, with large, in-service fleets and broad operator bases.
Despite the quality of the pool's underlying loans, the pool has a large proportion of investment properties, 76.7%, which are susceptible to higher default probabilities.
Two other nonbank mortgage firms also recently got in position to raise capital while NVR, a builder and lender, added new authorization for share repurchases.
