RBC

GM Financial Revolving Receivables Trust, 2025-1 has a five-year-long revolving period, risking exposure to assets with longer terms.

The deal also offers a subordination piece that represents 14% of the pool balance, helping to boost the credit to the notes.

In both scenarios of the 2025-1 series, the capital structure will issue notes through about eight tranches, including an overcollateralization piece representing 5.15% of the pool balance.

T-Mobile is broadly syndicating $500 million of securities, and the total size of the securitization is $561.34 million.

The bonds exist with several redemption provisions, including the first maturity date, a special redemption option from excess revenues, and a special mandatory redemption from excess revenues.

The transaction has a nine-month revolving period. All of the leases are closed end, where the issuer bears the residual value risk, and more of them can be added during that period.

The final maturity date is set in relation to the final payment of the notes in the most stressed scenarios, respectively, which is a departure from prior issuances.

The AA, A and BBB notes have 12.7%, 12.5% and 7.0% in credit support, which included excess spread.

All three tranches have a May 15, 2030 final maturity date and are expected to yield 5.4% on the three-month interpolated yield curve.

The top five issuers in the pool represent 4.73% of the pool, which is noticeably more diversified compared with the 12.50% concentration, according to Fitch's stressed portfolio at initial expected matrix point.