Auto ABS

ODART 2025-1 will be the first transaction from the program that will include loans originated through OneMain Foursight, the lending unit that was formed when OneMain bought Foursight Capital from Jefferies Financial Group.

Notes will be repaid through a sequential pay structure that will require principal to be repaid in full to the class A1 notes.

In both scenarios of the 2025-1 series, the capital structure will issue notes through about eight tranches, including an overcollateralization piece representing 5.15% of the pool balance.

Structurally, the GSAR 2025-1 transaction has 22.5% in subordination for the class A notes, down from 22.8% seen on the GSAR 2024-4 deal, and pre-pricing excess spread fell to about 7.8% of the outstanding balance, from 8.9%.

The auto ABS deal can be upsized to $1.5 billion, and most of the notes benefit from credit enhancement equaling 6.10% on most of the notes.

GFORT 2024-4 has an interest rate mismatch between the assets and the issued notes, which could reduce excess spread in the trust to the point where it is negative.

Some recent performance deterioration in Volkswagen's managed portfolio vintages and securitization pools helped account for the increase in expected CNL losses.

Total initial hard credit enhancement decreased compared with GCAR 2024-3, subordination for class A notes was unchanged at 48.2%.

All AHART 2024-1's assets are backed by a pool of prime-quality auto loans and retail installment sales contracts, which the lender originated either directly or through relationships with franchised motor dealer channels.

The fixed-rate notes are expected to yield 4.90% on the A1 notes through 5.29% on the class D notes.