ABS

The current pool has smaller exposures to the construction and turf sectors compared to the 2024-2 series, which have seen higher loss rates than the agriculture sector.

Unlike most aircraft securitizations, Gilead 2025-1 uses a mortgage amortization style, de-levering at a lower rate compared to a more typical straight-line payment style.

While SoFi uses a third-party servicer for both of those product types, it services its entire consumer loan portfolio.

The 4th aviation ABS this year indicates a busy year ahead for the sector.

The $500 million in similarly structured deals pool insurance-premium finance loans.

Among the deal's main credit strengths is that the real estate assets are protected by robust physical security, and 83.5% of the tenants have investment-grade credit ratings.

For conservative and risk-averse insurers, the vehicles are a relatively cheap and safe way to take part in the private credit boom that's financing mostly unlisted and leveraged companies.

All the class A notes benefit from total initial hard credit enhancement totaling 21.0% of the pool balance. Classes B, C and D benefit from 17.0%, 11.5% and 6.5%, respectively.

RG&E, series 2025-A, is the second utility cost recovery securitization this week, and is another first-time issuer.

Both forward-flow agreements and the larger asset-backed securitization market are becoming more popular, as consumer debt is growing.