This week's economic data highlight the risks and potential rewards of JPMorgan's updated recommendation to take a more aggressive risk-taking posture in ABS and CDOs. The University of Michigan's May expectations component of the Confidence reading was particularly encouraging --- the jump from 79.3 to 91.4 brought it close to the highest level (92.7 in both May and March 2002) since it plummeted in late 2000. JPMorgan's aggressive view on ABS chooses alignment with the more positive expectations component, where the firm factors in the expectation that policy makers are prepared to work overtime to ensure that the grim current conditions do not persist (as apparently consumers doing as well).
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The capital structure features initial exchangeable notes among the class A, mezzanine and B1 notes. The super senior and senior support tranches will repay noteholders on a pro-rata basis.
3h ago -
Note payments are linked to two tranched credit default swap (CDS) transactions, one related to the reference obligation between the issuer and SoFi Bank and SoFi Lending and the Issuer.
May 1 -
The Federal Open Market Committee held the federal funds rate at current levels, citing "lack of further progress" toward meeting inflation goals.
May 1 -
During this week's Federal Open Market Committee meeting, officials voted to lower the cap on the amount of Treasury securities that can roll off the central bank's books each month from $60 billion to $25 billion.
May 1 -
The fixed, tax-exempt notes have about 137.5% in expected senior bond parity and 124.1% in subordinate bond parity levels.
May 1 -
Moody's took note of several credit strengths in the portfolio, including that on a weighted average (WA) basis, the contracts have a weighted average FICO score of 767 and only a point higher for the upsized pool.
April 30