Securitization

The impact of tariff policy on the mortgage-backed securities market is likely to surface first in the cost of new housing construction.

The underlying prime mortgages have an average balance of $358,024, a weighted average (WA) original FICO score of 776, an original cumulative loan-to-value (LTV) ratio of 73.6%.

Series 2025-SFR2 and 2025-SFR3 are due to close by the end of April and count single-family homes as their primary collateral.

The notes will be issued through series 2025-3 and 2025-4, and aside from slightly different maturity dates, they have similar initial overcollateralization and reserves.

The deal is composed of 11,547 seasoned performing and reperforming loans that are first and second lien. Loan servicing includes a 180-day chargeoff feature.

For the first time in a decade, the metric also rose in the nine months to Dec. 31 across all segments — including equities, macro and spread products.

First aggressive LMEs in Europe rankle lenders, who have pursued court rulings on their permissibility.

ACHM 2025-HE1 will repay notes using a pro-rata, sequential pay structure that must satisfy an overcollateralization test, and cumulative loss and delinquency triggers.

Borrowers' high incomes and the abundance of monthly free cash flow speed up repayments and mitigate the transaction's exposure to economic downturns.

Interest in CLO ETFs, an asset class that's only been around since 2018, is picking up, with the number of funds doubling since August to a total of 24.