ABS

Two tranches of class A and B notes will raise $80 million from investors, to support Kalamata's business financing small business loans and merchant cash advances.

C$14.1 billion in purchases of federal government debt led the foreign inflows, as well as a C$6.6 billion investment in securities of government corporations and business enterprises.

The transaction could be upsized to $1.3 billion in issuance, supported by fixed-rate loans on mostly new agricultural equipment.

Diversification is just one of the deal's strengths, which includes higher excess spread than comparable floorplan transactions. The largest dealer accounts for 0.72% of the pool balance.

If the proportion of non-program vehicles increases, or if the proportion of vehicles from non-investment grade manufacturers increases, then credit enhancement levels will rise.

The weighted average (WA) credit line was $10,874, which Moody's said is low relative to other large card issuers, and in fact 69.5% of the pool has a credit limit of $10,000 or more.

The collateral pool has 2,701 loans, which have a WA original term of 91 months, and an average balance of $76,737, and an average rate of 17.26%.

Exposure to synthetic securitizations has more than doubled over the last two years, swelling to C$86.6 billion ($64.2 billion) at the end of the last financial year, from C$40.3 billion in 2022.

Treasury yields retreat from 2024 highs with month-end in view

Two trusts, the Sunnova Sol VI 2024-1 Issuer and the Sunnova Helios XIII, 2024-A will issue the notes, both with Atlas SP at the helm.