ABS

Upstart Holdings implemented underwriting and pricing changes in response to higher delinquency and CNL rates on securitizations issued since Q1 2021.

Monroe Capital's latest benchmarked the most senior class of notes to the SOFR, while the rest of the deal is fixed rate.

The Federal Open Market Committee is expected to raise rates by 25 bps at the conclusion of its meeting Wednesday, bringing its benchmark to a target range of 4.5% to 4.75%.

Distressed debt in the US alone jumped more than 300% in 12 months, high-yield issuance is much more challenging in Europe and leverage ratios have reached a record by some measures.

Most of the loans, 97.2%, were underwritten to less than full documentation, while 30.1% of the loans verified income on 12- or 24-month bank statements.

Most California households and businesses lack adequate flood insurance protections, raising concerns about eventual risks to RMBS and CMBS transactions.

FCAT 2023-1 has a stronger collateral pool composition than a recent transaction, with a lower concentration of loans from indirect origination sources.

Junior notes in the three-tranche structure could receive certain regular principal payments before more senior notes, under certain conditions.

Initially, the notes have 25.50% of over-collateralization (OC) of the initial pool balance, and that is expected to build to a target OC level of 35.00%.

Accounts that were one- to 30 days past due have a delinquency rate of 3.50%. Delinquencies rates dropped noticeably with longer timelines.