ABS

Fitch Rating says it noticed a greater preference for consumers to use cellphones for a longer period and previously decreased the assumptions for upgrade losses to 0.25%, from 0.35%.

Up to 68% of the portfolio assets were restructured. The securitization has a grace period with term extension that allows borrowers to pay interest-only.

CLO market strength likely to continue in 2025 if the U.S. economic soft landing remains on track.

The transaction will fund a new storm recovery reserve of $150 million, approximately $45 million of which will help recover losses from June 2023 storms.

After a double-digit increase, analysts expect sectors to continue to grow in 2025, albeit with some credit deterioration.

The private, pass-through structure includes elements of both public transactions and those with bank expertise.

ABS overall should outperform, but risks remain in specific areas

The deferred pay structure offers investors a premium over traditional residential transition loan securitizations.

Small Business Act 7(a) loans will secure the notes. Interest will be repaid through subordination and interest will be repaid on a pro rata basis.

There is a three-year revolving period when the transaction will not make any principal payments to the notes unless an early amortization event occurs.