ABS

JPMorgan Asset Management’s Kelsey Berro says credit markets are prepped for higher rates and she sees value in several sectors.

Eight middle market CLOs were under critical observation; 97% of them were upgraded and 3% were affirmed, and 14 notes under investment-grade were upgraded.

About 58.1% of the loans are in California, while two California cities -- Los Angeles and San Diego -- make up the pool’s largest MSA concentrations.

The best-performing countries on human and labor rights have significantly lower bond market spreads compared to the worst, even when taking into account factors such as level of income.

The Fed is getting a late start as it is, say observers. Its poky pace of target rate action is setting up the markets for a rush beginning in March.

By the time the latest Vertical Bridge deal, Series 2022-1, closes, the issued notes will be the only ones outstanding from the VB-S1 program.

The Federal Reserve in Washington remains mostly in a remote posture, and at the Office of the Comptroller of the Currency, no final decision has been made.

SCF 2022-1’s reserve account is funded at 1.0% of the initial aggregate discount balance (ADB), which is not amortizing.

Portfolio managers are trying to get a handle on the recent swings that have left virtually no corner of the market untouched.

Monday’s rebound in yields also kicked in a resumption of curve flattening with the gap between 2- and 10-year yield falling almost 4 basis points to about 40.5 basis points.

A pool of equipment lease contracts to industrial and commercial clients, will underpin the notes to be issued from the trust, VFI ABS 2022-1 deal.

Backed by high quality loans to professionals, Navient Private Education, 2022-A, will issue the notes through a relatively short-term, sequential structure.

Investors are making a major miscalculation by betting the Federal Reserve’s coming cycle of interest-rate hikes will end with its key rate not too far from where it is now.

About 3.3% of loans in the deal fall into the 600-649 FICO bucket on the current Sunnova Helios VIII, 2022-A, compared with a 1.2% level in the 2021-C deal.

The moves underscore how fast investors have been repositioning for Federal Reserve’s rate hikes. Strategists now predict two-year yields at 1.9% for the end of 2022.

New vehicles account for about 21.5% of the SDART 2022-1 pool, down from 23.0% of the 2021-4 deal, amid the supply crunch for components to build new cars.

The sponsor, owned by Blackstone Real Estate Debt Strategies and a majority-owned affiliate of BREDS IV Residential Holdco, will retain a residual interest.

With minimal coupon protection, exceedingly long duration and super-tight credit spreads, the powder keg was fully loaded. Now we have sizzling inflation and hawkish central bankers providing us with the spark.

There are few safe investments today, and as inflation shows the biggest increase in 40 years, one opportunistic investor blasts CLOs’ risk versus returns.

Government bonds worldwide are extending declines after the worst six months in five years, a Bloomberg index showed. Meanwhile, the pool of negative-yielding debt shrank to a six-year low.