Securitization

Second-lien mortgages make up the collateral pool. Those assets normally have a high expected loss severity, but the borrowers appear to be of prime credit quality.

In addition to that subordination, the deal structure includes cash trap and sweep conditions to support cash flow to the deal.

With borrowing costs near multi-year lows, median equity distributions for the securities reached an annualized rate of 12.1%, the lowest since 2020.

Senior notes are supported by an interest reserve account, and class A2 notes have a scheduled annual amortization of 1.0% before their anticipated repayment.

Jamaica's cat bond success could spur issuer and investor interest in the product, putting Beryl's failure to trigger any compensation in the past.

ABCLN 2025-B also benefits from a line of credit sized to cover up to five months of missed interest payments in the event Ally defaults on its interest obligations.

AMDR 2025-1 is the inaugural securitization for Americor, an Irvine, Calif.-based which offers debt resolution services, personal loans, debt resolution loans, mortgages and home equity lines of credit.

The issuance can be expanded to $1.2 billion, with virtually the same capital structure characteristics.

LADAR 2025-3's loss levels are notably lower than the rating agency's assumptions on the LADAR 2025-1 because the sponsor excluded borrowers with credit scores lower than 701 from the collateral pool.

WFLOOR 2025-1's annualized monthly yield, which averaged 20% since 2018, has been consistently higher than most other dealer floorplan trusts that Moody's rates.

Most of the pool of 1,011 residential mortgages, 69.7%, are considered non-prime mortgages, primarily due to the documentation and styles of underwriting.

The ECB will argue that shifting credit risks off the balance sheet through so-called synthetic significant risk transfers could expose banks to refinancing risks during market stress.

HINNT's sellers can repurchase defaulted loans, which increases the transaction's recovery rate, and enhances the credit to the notes.

Lemin's team of generalists seek risk-adjusted returns across the securitization spectrum. But not every asset class makes the cut.

Oxford Finance's collateral has a maximum advance rate of 72.0% on the A1 and A2 notes and 82.0% on the class B notes.

FFIN 2025-3's average loan balance, $16,366 was lower compared with the 2025-2 deal, when it was $19,993, and the WA interest rate on the current deal is 12.15%, down from 12.56%.

Each manufacturer commits to repurchasing unsold new vehicles in inventory when the dealer terminates the agreement—if they are undamaged and unused.

The pool appears to be well diversified by loan originator. Vista Point Mortgage and FundLoans Capital together originated the largest portion of the portfolio, representing 29.3%.

Up to 75% of the class A2 notes pay a coupon based on the Secured Overnight Financing Rate (SOFR). Also, since the assets pay a fixed rate, interest rate spikes could eat away at excess spread.

In terms of asset fundamentals, the high-quality tenant committed to a 15-year lease with maturity dates through various end dates in 2040. That includes 2.0% annual rent increases.