Securitization

The WA original term is about 68 months for all three pools. That is shorter than the term on the previous series, but within the range of terms on recent deals.

SunStrong Issuer also includes a sequential amortization trigger. Should the cumulative default level exceed the applicable trigger level.

Tariff impact on distressed companies could fuel LME increase

SLAM has debt service coverage ratio (DSCR) triggers and a utilization test in the structure to help maintain cashflow and support credit in the notes.

A range of investment residential properties, including single-family homes, condominiums and multi-unit properties, will secure the debt.

The market for estate loans packaged into debt slowed dramatically after the Federal Reserve sharply raised interest rates in 2022.

Guardian's contribution includes up to $400 million of seed capital that Janus Henderson will invest in securitized credit and active fixed-income product innovation.

The deal can be upsized to $2 billion, and the transaction will repay principal sequentially, growing non-declining enhancement as the notes amortize.

The dental and medical spa industries accounted for 60.1% and 26.0% of the deal's balance.

Industry diversification and strong borrower financials bode well for CLO prospects in uncertain times.