Securitization

Leftover goals from the first administration of president-elect Donald J. Trump 1.0 could shake MBS and other ABS sectors.

The agency wants the National Collegiate Student Loan Trusts, which sell student loan asset-backed securities (ABS) to investors, to pay $2.25 million in fines to borrowers.

KBRA notes that commercial obligors with an investment grade rating make up 76% of MassMutual's customer base. Within that group, payments from the U.S. government account for 14.4%, the largest concentration.

ODART 2025-1 will be the first transaction from the program that will include loans originated through OneMain Foursight, the lending unit that was formed when OneMain bought Foursight Capital from Jefferies Financial Group.

Island is a first-time issuer and largely originates and services the loans through its network of 48 branches.

Notes will be repaid through a sequential pay structure that will require principal to be repaid in full to the class A1 notes.

The $1 billion deal included classes A-L-A and A-L-B were offered as loans.

The inaugural deal is expected to close by the end of the month. Among its structural features are cash trap and cash sweep provisions.

The movements were spurred by jitters around persistent inflation and ballooning government debt, leading futures traders to wager that the Fed is unlikely to ease monetary policy again until late 2025.

The prime pool can be upsized to $1.7 billion, and the base pool amount has a lower securitization discount rate of 9.60%, lower than the previous deal from this program.