ABS

The distribution of dealers among the top categories have improved, while the floorplan loans have monthly payment rates that are at record highs.

Some buyers such as insurance companies tend to prefer longer duration to match their liabilities. That dynamic has also made asset based finance much more important

One potential credit drawback is that 25% of the pool finances construction equipment loans.

The trust will repay notes through a $160.7 million, floating-rate class benchmarked to the three-month Secured Overnight Financing Rate (SOFR), and a $25.1 million of fixed-rate, class B.

Among the winners: Hedge funds betting that bond yields will rise anew. It's clear that Jackson Hole's hawkish message has been received loud and clear.

After a challenging 2022, fund flows reverted to positive territory in 2023 even though higher interest rates and wider spreads have considerably reduced the supply of securitized product.

The fund gained about 4% in the first half of last year. Separately, LibreMax has raised $1 billion across two other funds, the LibreMax Core Fund and LibreMax Dislocation Fund.

Some $400.4 million in residential loans will secure the collateral pool, virtually all of which, 99.2%, were originated on 25-year terms.

Total credit enhancement on the notes amounts to 13.50% and 7.00% on the senior and subordinate classes of notes, respectively.

The current pool does contain personal loan renewals, and they remain in the pool as eligible collateral during a three-year revolving period.