ABS

The U.K. manager's assets have declined from peak of nearly $20 billion before a spate of 2020 losses.

CPS provides auto loans to U.S. consumers who have situational credit problems, but display an ability to pay their obligations, according to the company.

Rising balances and annual percentage rates alongside lower FICO scores mark used vehicle loan pool.

Delinquencies are balanced by low loan-to-value ratios, which could result in more favorable recoveries in the event of defaults.

The proportion of construction equipment in the pool is the highest compared with other Kubota Credit transactions, which is a potential weakness.

The six biggest banks in the U.S. are expected to sell between $28 billion and $32 billion of new bonds after they report quarterly earnings, and regional banks — seeking to raise more capital — could be right behind them.

The issue is secured by a revolving pool of term and line-of-credit small-business loans made to a diverse set of industries.

The unsecured loans are generated on marketplace lending platforms using proprietary technology that use artificial intelligence and machine learning software.

Credit enhancement is lower for all classes relative to the Sierra Timeshare 2023-1, except for class C, and that was because of lower overcollateralization and lower subordination.

The notes have a coupon of 7.1%, a FICO score of 728 an original cumulative loan-to-value ratio of 66.9%, and an issuer debt service coverage ratio of 1.26%.