Industries

Notably in February, Americans reduced spending on services for the first time in three years in the face of higher prices — including on dining out.

Sabey 2025-2 will feature a $24.8 million liquidity reserve among other credit enhancement mechanisms, including cash trap and early amortization triggers.

Borrowers are considered prime in this pool, but Fitch Ratings notes that delinquency rates have been increasing since 2022.

Total hard credit enhancement will represent 4.5% of the note balance, and initial reserves amounting to 2.0% of the pool.

The pass-through certificates are supported by a full pool of amortizing loans, which have no interest-only periods.

A set of performance-related triggers—cash trapping and expense reserve—will help maintain cash flow to the notes.

Over 85% of the collateralized loan obligation's total dollar value will be comprised of apartment complexes and hospitality and industrial properties.

The fund closes ahead of separate news that it formed the Private Real Estate Credit platform, which will originate senior and subordinated commercial real estate loans.

Total delinquencies as a percentage of John Deere's managed portfolio was 3.06%, an increase since 2022. That aligns with the decline in corn and soy prices in the same period.

Amortization will start after the deal's two-year revolving period, when the trust will deposit revenue including collections and upgrades into the acquisition account.

Small-balance commercial mortgages, SBA 504 and investor loans, all first-lien, make up the collateral pool.

The current pool has smaller exposures to the construction and turf sectors compared to the 2024-2 series, which have seen higher loss rates than the agriculture sector.

The rating agency covers its bases in preparation for a surge in data center debt

RG&E, series 2025-A, is the second utility cost recovery securitization this week, and is another first-time issuer.

Residential customers made up 70.1% of NYSEG's sales revenue, while commercial and industrial customers account for the other 30% of sales. The latter is a relatively high exposure for such deals.

Debt service coverage ratio triggers, including cash trapping and rapid amortization, will provide much of the credit enhancements to the notes.

Deal production has been a bright spot, but delinquencies could soon reach record highs, especially for office CMBS.

Valley National Bank and Dime Community Bancshares expect a better balance of deposit costs to help boost their net interest margins in 2025.

Obligors are slightly more concentrated but the percentage of obligors in higher credit quality grades—2 through 5—increased to 56.9%, from 41.3% from the previous deal.

The inaugural deal is expected to close by the end of the month. Among its structural features are cash trap and cash sweep provisions.