ABS

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.

While spreads are widening in many cases across asset classes and credit bands, guidance is around 235 basis points over the I-Curve on the 'AAA' notes, a little tighter than 250 bps over the benchmark on the FHF 2022-2 deal.

The notes will accumulate an overcollateralization level of 11.20% of the current collateral balance and benefit from a cash reserve account equaling approximately 1.25% of the initial collateral balance.

In a sign of how Japan's influence has grown, its regional banks have become a go-to buyer in the $1.3 trillion market — an important source of financing for junk-rated U.S. companies.

Urschel is said to have led the financing for the majority of recent franchised whole business securitizations and several dozen transactions involving cell tower, data center, fiber and other digital infrastructure assets.

It has to wrestle with how the Federal Reserve's rate increases are crimping dealmaking, raising the cost of borrowing and ending a period of rapid growth.

The properties have an aggregate critical load power of 65.25 megawatts, and all of the data centers in the portfolio are turnkey, which the rating agency considers positive.

The deal launched from the Achieve platform, bringing Freedom Consumer Credit Fund's cumulative issuances across its securitization portfolios to $4.8 billion.

Analysts have a base-case proxy of 1.2%, accounting for stress in the agricultural sector, which includes higher default levels from the 2006-2009 and 2015-2017 vintages.

Some 74.8% of the loans had original terms greater than 60 months, higher than 68.5% than the FAST 2020.

The current ABS pool is more heavily weighted toward large balances. Accounts with balances of $10,000 or more account for 49.9% of the pool.