With ABS prices on top tier names and sectors generally reflecting fair value, value opportunities are somewhat limited. However, as fixed income investors “pour into credit” reaching for yield, subordinate ABS offers significantly improved relative value versus unsecured Corporates. Hence, the firm has increased r allocation on subordinate ABS to overweight .On the consumer credit side, the March employment report was softer than expected with a total loss of 465,000 jobs over the past two months. Remains wary of subprime names given our view that consumer credit trends may be more susceptible to downside risks than the market anticipates.
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The Philadelphia-based bank's parent company, Republic First Bancshares, had been roiled by a yearslong proxy battle involving activist investors groups and its former CEO.
April 26 -
Known for subprime financing, the sponsor has been making inroads lending to near-prime customers in the last couple of years.
April 26 -
Spreads ranging from 16-18 basis points over the three-month, interpolated yield curve on the P1 (Moody's) and F1+ (Fitch) notes, to 160 to 170 over the benchmark on the class D notes.
April 25 -
Mortgage rates rose 7 basis points this week, Freddie Mac said, and more increases are likely following a weaker than expected gross domestic product report.
April 25 -
Broken down by product type, the agency's NJCLASS Standard Fixed product should account for a large majority of the loans, 75.4%. NJCLASS Consolidation will account for the next-largest group, 14.1%.
April 24 -
Congressional Review Act resolutions are ramping up ahead of the 2024 election cycle. Experts say that, although none are likely to become law, the resolutions are still powerful messaging and political tools.
April 24