ABS

Despite a number of weaknesses, the bonds will benefit from a senior liquidity reserve account of $167.5 million and a subordinate liquidity reserve account of $20.5 million.

Most of the deals are FFELP loans, but the sponsor and servicer entity is considered a financially weak company.

Moody’s steps in to provide a higher rating on the Class B portion of the COVID-hardened deal.

The sponsor’s Fortune 500 parent provides comfort in the face of the subprime-auto industry’s woes.

The auto-lease and nonprime-auto sectors are fueling what likely will be record volume.

The deal carries relatively low leverage and high subordination.

Moody’s: Rapidly evolving electronic-vehicle technology poses collateral risk also for traditional rental-car ABS.

Benchmark will issue 21 classes of certificates, with 13 entitled to principal and interest payments. Six classes will receive interest only.

Forget the goods supply-chain crisis threatening global risk assets: the real test comes next year when a service-sector boom drives labor costs higher and pressures central banks to tighten policy more decisively.

The securitization is backed by an irrevocable financing order that empowers the issuer to impose, collect and receive fixed recovery charges (FRC), from retail customers.

Credit ratings on the subsequent securitizations “remained relatively stable,” despite program transaction ratings being linked to the sponsoring airlines’ corporate ratings.

Larger system wide sales, three note classes and a cash trapping period, are among the four key changes to the pending transaction. It is also the largest Cajun Global series.

Over time, the MFIT securitizations have been getting larger in dollar volume, pricing at tighter spreads, and benefiting from more subordination.

While the trust is exposed to potential for degraded performance during the revolving period, Fitch pointed out that obligors tend to prioritize DPP payments.

Hertz Global Holdings Inc.’s $4.2 billion deal with Tesla Inc. is about more than just an order for 100,000 cars. It’s about vaulting electric vehicles into the mainstream.

The enormous issuance is backed by a single loan secured by first-priority mortgages on a pool of about 6,148 single-family rental homes, and 299 townhouses.

President Joe Biden and fellow Democrats are racing to reach agreement on a scaled-back version of his economic agenda, with a self-imposed deadline and his departure later this week for summits in Europe intensifying pressure on negotiations.

The deal is fortified with collateralization, subordination and reserve accounts throughout the capital structure to get most of the notes to top ratings.

Bond traders’ expectations for how fast inflation will rise over the coming five years have topped 3% for the first time on record.

The supply chain crunch appears to be reflected in this deal, which has the smallest collateral pool of lease contracts since 2019, at 35,020.