Securitization

It was propelled in part by supply pressure, as demand was soft for the first of three Treasury auctions this week and as a slew of high-grade corporate bond offerings competed for investor cash.

Despite shifts in work habits after COVID-19, the office building was 93.8% leased at the start of the month.

Alternative income documentation underwriting accounted for 61.9% of the collateral, compared with 55.2% of the underlying loans in the previous deal.

Up to 68% of the portfolio assets were restructured. The securitization has a grace period with term extension that allows borrowers to pay interest-only.

CLO market strength likely to continue in 2025 if the U.S. economic soft landing remains on track.

The transaction will fund a new storm recovery reserve of $150 million, approximately $45 million of which will help recover losses from June 2023 storms.

Overall CLO growth indicates the asset going mainstream in Europe

A vast majority of the collateral pool balance, 82.6%, are mortgages used to purchase primary residences, and just 17.4% finance second homes.

Lenders will need to lean on alternative products as limited mortgage rate relief keeps some consumers on the sidelines, but others will tire of waiting and act.

Alternative documentation accounts for 37.9% of the pool balance, compared with 24.6% on the 2024-NQM4 deal.