Barclays

COLT 2024-5 has a higher concentration of full documentation loans, 6.1%, compared with 5.1% on the COLT 2024-4 deal, and smaller concentrations of piggyback mortgages and loans on investor properties.

The San Francisco-based startup is working with Barclays Plc on a potential health care asset-backed deal in the broadly syndicated market and has started lining up investor meetings.

Strong fundamentals like strong contractual cashflows, a favorable outlook for the wireless sector and the underlying mortgage structure all support positive credit to the notes.

Affirm Asset Securitization benefits from overcollateralization in several forms. Target overcollateralization during the revolving period will equal 2.65% of the initial adjusted pool balance.

Retail properties account for the largest portion, at 23.5%, according to KBRA. Lodging follows, with 22.1% of the pool.

The deal brings Kiavi's half-year issuance to almost $1 billion, and after selling all its offered notes, was open to potentially selling rated RTL securitizations in future offerings.

Royalty revenues account for virtually all the program's incoming securitized collections, at 95.5%, with fees on initial contracts and other income accounting for 4.5%.

Amid the housing market's challenges, the pool still has borrowers with strong credit profiles, including a 48% debt-to-income (DTI) ratio, and low leverage of 63%, for a sustainable loan-to-value ratio.

The wireless infrastructure industry has positive fundamentals, with all major U.S. carriers making further network infrastructure investments to boost coverage and capacity to meet growth in wireless data traffic.

Data center and fiber investments are growing for a host of reasons, including employees working from home more since the pandemic.