Securitization

The renewables firm also plans to raise as much as $500 million by February via banks or a private placement in the offshore market.

Catastrophe bonds come with risk and unique advantages as some call the asset class "the holy grail" of investments.

The economist, who runs Roubini Macro Associates, is positioning for a curve steepener, a popular Treasuries trade where the gap between long- and short-dated yields widens.

The market expects 5.2% yields on the AAA-rated tranche, slightly tighter than the 5.1% seen on the AAA-rated notes on an earlier deal, the Affirm Asset Securitization Trust, 2024-B series.

There is a three-year revolving period when the transaction will not make any principal payments to the notes unless an early amortization event occurs.

The deal comes about 18 months after Maritime Partners completed its securitization of Jones Act shipping business revenue, raising $235.3 million.

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.

Yield-hungry insurers, banks and exchange-traded funds fueled demand this year while a wave of redemptions crimped net supply.

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

Pivot-HASI's portfolio consists of 96 projects, most of which are community solar facilities. Single off-take power purchase agreements for commercial clients make up the rest.