Securitization

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.

Underwriting relied on full documentation in keeping with Ability-to-Pay rules, and all the loans received a third-party due-diligence review.

Express Settlement Loans, or E-Loans, extended to customers enrolled in a debt relief program, and Consolidation Loans, or C-Loans, for more qualified borrowers are in the pool.

The true-up mechanism is charged annually, but can be paid more frequently to ensure notes make timely payment of principal and interest of the 2025 revenue bonds and related financing costs.

Another strong year for aircraft leasing and ABS is expected for 2026, due partly to limited growth prospects from equity capital.

Sponsored by American Water, the deal funds service contracts on HVAC, plumbing and external water lines.

The deal comes to market as President Trump suggested barring institutional buyers from snatching up single-family homes, the type of properties secure the bulk of SEMT 2026-INV1.

ODF II will focus on originating senior and junior commercial rea estate debt investments across major U.S. markets, focused on multifamily properties.

Analysts at RBC Capital Markets said the plan is bad news for Invitation Homes and American Homes 4 Rent, but the companies "are long past the time of significant growth in home count

While Westlake's customer accounts usually have credit bureau scores ranging from 500 to 700, the WLAKE 2026-1 collateral pool's non-zero weighted average credit bureau score was 620.

Largely strong credit qualities were offset because by loans on single-family homes in the pool dropping by 0.5%, and that the percentage of loans that received due diligence decreased by 0.4%.

With limited seasoning and primarily a clean payment history, OBX 2026-NQM1 had a seasoned probability of default of 33.3% among the AAA stresses and 11.4% among the B.

Late last year, commercial bank holdings of mortgage paper reached the highest level since 2023 as these depositories are flush with deposits.

Keefe, Bruyette & Woods attributes Fannie Mae and Freddie Mac portfolio growth for the narrower spreads, but other reasons include lower volatility.

Initially, all the class A notes will benefit from total hard credit enhancement that represents 6.10% of the note balance, and the components give the notes a strong credit boost.

The pool of mostly multifamily properties has a cap rate of 9.49%, and an LTV rate of 75.1%.