ABS

DEXT is very diversified by equipment type. Enterprise technology, medical technology and surgical equipment account for the top three concentrations, representing 22%, 16% and 10% of the portfolio.

Slightly more than half of the borrowers in the collateral pool, 54.74%, have a FICO score that is higher than 740, and just 3.06% of the borrowers have a score below 661.

Both tranches have the same legal final maturity of Oct. 20, 2033, an initial (OC) of 26.00%, and an initial reserve of 0.50%.

The deal has the smallest pool balance from the ACHV program this year, with an aggregate current principal balance of $177.8 million. The collateral pool contains 14,141 loans, with an average current loan size of $12,577.

Lam, who oversees the firm's structured credit investment strategies, managed CLOs, separate accounts and commingled accounts. Lam succeeds Andrew Gordon, who will assume the role of executive chair of the board of managers.

Donlen and LPUSA's involvement as a servicer is considered a credit strength, because its managed portfolio, which performed well even throughout the 2007-2008 recession, chalked up consistently low historical rates of delinquencies and net losses.

US 30-year yields dropped seven basis points to 4.79%, unwinding part of Thursday's surge that was driven by a somewhat disappointing inflation reading and a weak bond auction.

While securitization performance improved over last year on a quarterly basis, the year-to-date measure dipped compared with 2022, following expectations.

The three class A notes have initial hard credit enhancement that amounts to 36%, and consists of over-collateralization, the reserve account (with an initial coverage amount of 1%) and subordination of all notes, except class G.

These firms are seeing an uptick in demand for niche capital relief trades, according to David Snyderman, Managing Partner and Global Head of Alternative Credit and Fixed Income at alternative investment manager Magnetar Capital.