J.P. Morgan Securities

With limited seasoning and primarily a clean payment history, OBX 2026-NQM1 had a seasoned probability of default of 33.3% among the AAA stresses and 11.4% among the B.

A significant portion of the loans in the pool by balance, 44.5%, are designated at non-QM, according to DBRS, adding that about 50% of the loans in the pool were made to investors for business purposes.

Monthly excess spread will confer credit enhancement to the notes, KBRA said, and while it will be released it will not be available as credit enhancement in future payment periods.

The senior notes will build hard credit enhancement levels over time because classes B through G will be locked out of principal payments for eight months.

ABCLN 2025-B also benefits from a line of credit sized to cover up to five months of missed interest payments in the event Ally defaults on its interest obligations.

LADAR 2025-3's loss levels are notably lower than the rating agency's assumptions on the LADAR 2025-1 because the sponsor excluded borrowers with credit scores lower than 701 from the collateral pool.

The pool appears to be well diversified by loan originator. Vista Point Mortgage and FundLoans Capital together originated the largest portion of the portfolio, representing 29.3%.

Ford Credit Floorplan pays a fixed rate to ABS investors, while the dealers' assets pay a rate pegged to the flexible prime rate, so there is the potential of eroding excess spread.

The 378 contracts were extended to 105 obligors at mid- to large-size companies, and they have strong credit profiles.

But even if global financial crisis 2.0 doesn't come, investors may well be in for a rough ride in the coming months as frothy financial markets come to terms with a cyclical slowdown.

Among other credit boosting measures, the structure also prohibits any interest from being advanced on loans that are more than 90 days delinquent.

The deal features a full turbo amortization structure, where all collections will be applied to amortize the bond principal. No cash will be paid to the sponsor until the bonds are paid in full.

Most of the pool, 74.6%, was underwritten to less than full documentation. Of the pool loans, 38.2% of them were underwritten to a 12-month or 24-month bank statements.

Notes are expected to pay a coupon of 4.5% on the A1 through M2 tranches, compared with a 5.25% coupon on the previous deal.

The loans are secured by single-family residential properties, townhouses, planned-unit developments, condominiums, and two- to four-family residential properties.

The portfolio has high credit quality loans and geographic concentration.

The WA original term is about 68 months for all three pools. That is shorter than the term on the previous series, but within the range of terms on recent deals.

The market for estate loans packaged into debt slowed dramatically after the Federal Reserve sharply raised interest rates in 2022.

Yields, are expected to come in ranging from 4.4% on the class A notes, to 4.5% on the class A4 notes.

Cross 2025-H3 has moderate leverage, according to KBRA, with a weighted average (WA) loan-to-value ratio of 72.3%, and a debt-to-income ratio of 33.5%.