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Sport utility vehicles (SUVs) represent 26.6%—and 26.7% if upsized—of the deal’s underlying portfolio, compared with 13.0% from the 2022-1 securitization.

CRVNA 2022-P1 has a collateral pool with annual gross excess spread of 3.41%, compared 5.6% with from the 2021-P4 deal, due to the lower collateral interest rate.

Underpinning the notes are two special units of beneficial interest in leases owned by an origination trust, issuer’s rights under any letters of credit.

The current state of the car market, which is sending sales and prices of used cars spiking, could pose a credit challenge to the notes.

The deal is secured by loans on new and used vehicles and that largely follows the structure of recent transactions, particularly the 2021-C.

This deal appears to be the first since the Netherlands-headquartered multinational acquired First Investors in an all-cash transaction finalized last November.

The collateral pool is comprised of receivables assets based in Japan, and several classes of the transaction will issue dollar-denominated notes.

RAC Asset Holdings, a related entity, has been purchasing older vehicles with more mileage, and spent more on reconditioning, to make up for the squeeze on supply of vehicles.

The collateral of CPSART 2022-A reflects key changes including a decrease in the percentage of called collateral, and a drop in the months of seasoning on the notes.

The main risk to the repayment of notes is that Hertz will not be able to recoup enough funds, through used vehicle sales, to fund the payments to bondholders.