ABS

Borrowers had been in business for a WA 14 years, an average credit score of 708, and the assets had calculated receivables yield of 38.9%.

While regulators' actions have contained the problem for the moment, the past week's collapse of Silicon Valley Bank and Signature Bank recalls past "spectacular financial flameouts," Fink said.

The entire pool adheres to full documentation origination and they qualify as safe-harbor qualified mortgage, with FICO scores of 764.

The figures reaffirm that the Fed's quest to tame inflation will be bumpy as the economy has largely proven resilient to a year's worth of interest-rate hikes.

ARI has increased hard credit enhancement compared with previous transactions, however, which helps to the potential risk of offset negative excess spread.

HPEFS 2023-1, will benefit from a 1% reserve account, and 7.40% initial overcollateralization. A cash reserve account provides liquidity to the notes.

The pending transaction has a class D, unlike the previous transaction, the Santander Drive Auto Receivables Trust, 2023-1, and a higher cumulative net loss expectation.

Moody's notes that obligors that are large enterprises or public institutions make up 82% of the discounted receivables balance.

Government bonds surged and stocks slid as signs of distress at a California lender spurred broader worries over the US banking sector's debt holdings.

One enhancement to the notes, however, is a $55 million credit insurance policy from AIG Europe that covers the Rosy Blue Carat receivables.