ABS

The two-year U.S. rate, which is the most sensitive to monetary policy, slid for a fifth day, its longest streak since July 2022. Economists now assign a 65% probability of a U.S. recession.

Moody's had lowered the residual value loss a full percentage point, but did not mention whether it would lower the credit loss expectation.

Traders flocked to shorter-maturity Treasuries, driving two-year yields down 18 basis points at one stage. The 10-year note's rate was 1.5 percentage point lower than the 3-month T-bill.

Traders got another taste this week of the contrasting forces battering the market with bonds falling after a surprise cut to global oil production, only to bounce back hours later following weak economic data.

Initial hard credit enhancement for the class A notes is lower, at 37.30%, because of lower subordination in the deal.

Despite some signs of weaker performance, metrics remain within manageable levels, and credit enhancement appears to be sound.

The bonds are initially being marketed at a heavily discounted price of 78 cents, bringing the all-in yield to roughly 14%

The five-year notes benefit from overcollateralization equal to 35%, and will use the proceeds to repay a line of credit facility.

Some sponsors are selling only AAA or investment grade ABS and retaining the riskier assets, as one way to cope with escalating interest rates.

HART 2023-A has a yield supplement overcollateralization amount (YSOA) of 10.11% as a percentage of the aggregate pool amount of $1.4 billion. It was 10.76% on HART 2022-C.

The company is looking to take advantage of Credit Suisse's step back from other areas across markets too. Within securitized products the firm has been looking to expand into new products that trade in secondary markets.

(Bloomberg) -- Goldman Sachs Group Inc. is shaking up the leadership ranks at the heart of its capital-market business after a big overhaul in October that merged investment banking and trading operations all in one.

The latest AESOP includes medium- and heavy-duty trucks, plus different minimum depreciation rates of non-program vehicles (NPVs) to account for their market values.

Holders of the so-called catastrophe bonds could end up doing far better than investors in the firm's junior bonds, which have been written off by Swiss regulator FINMA as a part of the UBS deal.

Compared with previous deals, Kubota Credit 2023-1's collateral pool is only slightly less diversified, both in terms of obligor concentrations and the equipment mix.

The disparity comes as fixed-income traders allocate money into safer credits, such as investment-grade or US government debt, amid concerns that borrowers in the lowest-rated rung of corporate debt are even more at risk of defaulting than usual.

On the face of it, Powell's Federal Reserve this week pushed ahead with what's been its policy for the past year and so did other major central banks. But in reality everything's changed, after a string of bank collapses sent tremors through world markets.

The current deal is a follow-up from a master trust that floated $1.2 billion in notes last September, and will repay the notes sequentially.

For this securitization the 85.7% portion of standard amortizing loans does include a sliver of (SAC) loans, or 4.7%, that are past their promotional periods and 14.3%, that are within.

This Mosaic deal is the first to include PowerSwitch ZERO loans, which defer principal and interest for the loan term's first 12 or 18 months. They account for less than 2% of the pool.