ABS

Subprime auto loan borrowers are increasingly falling behind on payments, and the value of used cars is dropping, two trends that are clobbering bonds tied to the debt.

Virtually the entire pool is financing used cars. Even that might leave the pool vulnerable to reduced recovery costs, should prices for used cars drop notably.

The alchemists of Wall Street came up with a solution for investors who needed fatter yields: complex products that spun extra basis points out of markets.

Based on the securitized utility tariff property, the security of the notes will depend on the number of customers in the utility's service area.

Aside from equipment leases, the collateral will include interest certificates and equity interests in entities formed to own aircraft leases and related aircraft.

The dollar resumed declines on Monday in New York amid a rebound in U.S. equities and other risk assets ahead of inflation data and the mid-terms elections.

The CLO is preparing to raise $494.5 million from the capital markets, with a reinvestment period of 2.9 years, and a a weighted average (WA) recovery assumption of 77.03%.

It said just over $1.2 billion of dollar notes had so far been accepted for purchase with six days still remaining for investors to sell back their holdings.

Should Libor become unavailable most CLO loans are already written to fall back to the prime rate. Managers will have to monitor their CLOs' legacy Libor loans.

The percentage of extended-term loans, 80.9%, is near the higher end in recent historical deals, but higher FICO scores are also a bigger portion of the pool.

Wednesday afternoon was full of drama as traders first took hope from the central bank's statement but then slumped following stern comments by Chair Jerome Powell.

Pagaya Structured Products had begun acquiring loans underwritten to tighter underwriting standards—especially among higher-risk borrower segments—in fall 2021.

Credit Suisse Group AG's long-term rating was downgraded by S&P Global Ratings to just one level above junk status, underscoring the bank's challenges after it laid out a radical restructuring plan last week.

Sunnova 2022-C shows borrowers with tighter credit qualifications, and initial OC, as a percentage of pool balance, is lower than Sunnova 2022-B's.

Active bond managers are licking their wounds amid this year's historic fixed-income rout and are banking on a big rebound in 2023 to show their worth.

Three of the note classes will issue deferrable notes, where the trust can defer interest payments to the notes under certain circumstances.

As big banks pull back on lending to oil and gas drillers, some US energy companies are relying on a novel kind of bond to get the financing they need.

Some 2.9% of the pool—comprised of 1,705 loans—was 30 days delinquent, and 68.3% of the loans had experienced one or more delinquencies in the past 24 months.

Stocks slid along with U.S. equity futures as disappointing results from tech giants soured sentiment and marred a tentative recovery in equities. Treasury yields rose.

Delinquencies in the 30-day-plus cohort have not produced higher gross losses, and recoveries in recent static pool vintages are retreating to historical averages.