ABS

The National Credit Union Administration, a government-backed insurer of credit unions classifies Veridian as "well capitalized," which helps mitigate some risks associated with its lack of securitization experience.

Rising demand and aircraft shortages are pushing up lease income, which is expected to continue tightening spreads for issuers.

Cadma Capital Partners will provide asset-backed financing to venture- and growth-lenders, high-growth companies, and financial sponsors.

The deal is the second one for this year, a different tack for a program that has appeared once annually in the past.

The pool is also granular and diverse, with the top 13 insurance companies accounting for 28.3% of the pool balance.

Compared with several previous Verus Securitization deals dating back to Verus 2022-8, the current transaction has the highest concentration of ARMs, at 33.9%.

Annualized excess spread and a cash spread account should mitigate concerns around the timing of cash flow to the trust and the collateral's assumed discount rate, says DBRS.

Since the previous deal from the master trust, the number of Hotwire Communications sites has increased from 515 to 675, and key performance metrics have improved.

Fed Chair Jerome Powell has been focused on so-called supercore CPI – core prices excluding housing – because he sees this segment of the services industry affected by a tight labor market.

Loans that have yet to be originated must adhere to limitations. No more than $719,870 of originations can consist of loans made to students attending proprietary schools.

Monthly payment rates in the pool reached record highs over the last couple of years, reaching 71.5% at the end of Q1 2023, one of several credit positives to the deal.

The program, which is facing some declines in performance, had not issued any credit card ABS since 2019-C, when it had issued about twice the current amount.

At around June 15, 2024, the VSAC will reach the end of a collateral recycling period, when it has the option to originate additional eligible loans.

The senior, triple-A rated notes, which is in the A-1B class, are expected to have a 210 basis point spread, with a 38% credit enhancement level.

The deal has a higher percentage of open bankruptcy assets, and the level of called collateral is 10.6%, which should actually slip to 8.0% of the final pool.

The current transaction—the platform's seventh Rule 144A deal—includes a 'AAA' note class, does not have a pre-funding period, and has a higher net recovery rate over the previous deal.

Landmark Funding Trust does not include a class E tranche, and overcollateralization has increased to 21.00% of the initial adjusted loan principal balance, from 10.35%.

A vast majority of the assets, 82.34%, were originated at 36-month terms, and Fitch notes that consumer preferences for longer term periods weigh in as a credit positive.

It's a debate that matters more than ever, as bond traders ponder the end of the Federal Reserve's aggressive campaign of interest-rate hikes and wager on cuts starting within months.

Deposits sank to $104.5 billion as of March 31, down 41% from the end of 2022, even after the country's largest lenders parked $30 billion of their own cash with the San Francisco-based bank in an effort to shore up its finances.