Lendbuzz Funding's latest securitization brings the sponsor's first pool of new and used vehicle loans collateralized by a higher concentration of near-prime and subprime borrowers, under the new LBZZ-NF platform.
Known as Lendbuzz Nonprime Finance Securitization Trust, 2026-1, the LBZZ 2026-NF1 will sell $229.7 million in asset-backed securities (ABS) through a structure of four tranches of class A, B, C and D notes, according to analysts at Kroll Bond Rating Agency.
In one reflection of its underlying collateral, LBZZ 2026-NF1 has a loan-to-value (LTV) ratio of 110.6%, on a weighted average (WA) basis, notably higher than the LTVs seen on previous deals dating back to January 2025, according to KBRA.
The pool's WA non-zero credit score is 631, notably lower than previous transactions. Also, a slight majority of borrowers attached to the loans, 53.23%, have credit scores of 660 or lower, KBRA says. Borrowers with no credit scores only account for 20.99% of the pool, while the percentage of those in the 661 to 680 credit scoring cohort, and higher, fall in the single digits, the rating agency said.
LBZZ 2026-NF1's A, B, C and D tranches benefit from initial credit enhancement levels of 28.5%, 19.0%, 10.0% and 8.5%, respectively.
KBRA assigns A-, BBB- and B+ to classes A, B and C, respectively.
Other aspects of Lendbuzz Nonprime Finance Securitization Trust are comparable to previous deals. Used vehicles dominate the underlying pool, at 84.7%, they have an average balance of $28,903, and WA original term of 68 months.
In terms of the pool's geographic balance, Florida, Texas and California take their usual places—at least dating back to the Lendbuzz Securitization Trust 2025-1—as first, second and third in the pool, with percentages of 22.2%, 21.1% and 11.3%, respectively, KBRA said.
