Securitization

Net franchise royalties support Jersey Mike's Funding 2026-1's cash flows, which accounts for 52.9% of securitized revenues.

The company allegedly made more than $200 million in "improper payments" before filing Chapter 11 earlier this week, lenders claimed, citing dividends and bonuses to corporate insiders.

The largest single obligor exposure is to the U.S. government, accounting for $146.8 million or 14.19% of the aggregate securitization value (ASV).

OBX 2026-J1 will repay noteholders through a senior subordinate, shifting interest structure.

The step came after FAT Brands didn't make interest payments due in October on some of its $1.2 billion in whole-business securitization debt.

During a three-month period after closing, PAID 2026-1's prefunding account will use deposits to purchase unsecured consumer loans, if they meet eligibility criteria.

TVC Mortgage's notes, which will be generally interest-only, will repay investors sequentially.

The moderate leverage reflects the quality of RMBS pools from recent issuance years. Borrowers have a non-zero WA annual income of $1 million, with liquid reserves of $594,348.

The deal includes some structural changes, such as subordination levels of 41.05%, 32.25%, 19.45% and 6.10% on classes A, B, C and D, respectively, and all those levels increased from the previous deal.

The notes will benefit from a reserve account, to be funded unless a default event occurs, and the transaction will deposit an amount equal to interest due on the class RR notes.

NewtekOne offers 10- to 25-year amortizing loans with no balloons, and either limited or no covenants, and other provisions similar to SBA 7(a) loans.

A reserve account is in place, although its percentage of the pool balance decreased compared with the previous deal. Also, pre-pricing excess spread was 13.89%.

Despite RCKT Mortgage's second-lien composition, the loans display several positive credit characteristics, including a WA credit score of 745.

The centers are also located in 15 markets, with the largest market accounting for 20.3% of the pool's annualized revenue.

Canyon Partners sees opportunities in corners of the mortgage, with tightened due diligence, and the auto ABS markets.

By aircraft value, Fitch says 6% are leased to credits considered investment grade, while the weighted average rating by Fitch Value ranges between 'B' and 'B-'.

The notes are expected to pay coupons of 4.94% on notes in the A1FCF tranche, rated AAA from KBRA and Fitch Ratings, to 6.78% on the B1 notes.

Sponsors used a master trust structure, raising £200 million and £54 million through the existing class A2 and class B tranches.

The loan is expected to have an initial term of two years, with the potential three, 12-month extensions.

Transactions from 2024 are performing better than deals issued in 2023, and deals from 2025 and 2024 are performing well with in expectations.