ABS

The prime pool can be upsized to $1.7 billion, and the base pool amount has a lower securitization discount rate of 9.60%, lower than the previous deal from this program.

The current deal adds a class E tranche, which provides subordination to the pool, unlike previous Oportun transactions dating back to 2022.

U.S. Treasuries plunged on Friday after data showed the labor market grew in December, sending the 30-year bond's yield above 5% for the first time in more than a year.

Fitch Rating says it noticed a greater preference for consumers to use cellphones for a longer period and previously decreased the assumptions for upgrade losses to 0.25%, from 0.35%.

Up to 68% of the portfolio assets were restructured. The securitization has a grace period with term extension that allows borrowers to pay interest-only.

CLO market strength likely to continue in 2025 if the U.S. economic soft landing remains on track.

The transaction will fund a new storm recovery reserve of $150 million, approximately $45 million of which will help recover losses from June 2023 storms.

After a double-digit increase, analysts expect sectors to continue to grow in 2025, albeit with some credit deterioration.

The private, pass-through structure includes elements of both public transactions and those with bank expertise.

ABS overall should outperform, but risks remain in specific areas