Securitization

Half of the loans were originated prior to the onset of the COVID-19 pandemic, and mainly in Q1 2020, while classes A and B have interest-only portions.

While the government is so far making payments, some have been delayed by banks doing lengthy checks that they aren’t breaching any restrictions.

Secured by a single Morgan Stanley first-lien mortgage, the SFR is the largest deal since the program priced its $2 billion transaction in July 2021.

Policy makers differ on what the neutral rate -- the rate that neither restricts nor spurs economic growth -- is and couch it in terms that don’t take account of the current high inflation environment.

The U.S. yield curve extended its recent flattening as investors evaluated the economic outlook amid tightening monetary policy and Russia’s war in Ukraine.

Sport utility vehicles (SUVs) represent 26.6%—and 26.7% if upsized—of the deal’s underlying portfolio, compared with 13.0% from the 2022-1 securitization.

Despite perceptions that smaller companies are riskier, they pose less risk to investors. Realized loss rates are lower, and they deliver higher returns.

Key changes in MMAF 2022-1, from previous transactions, include significantly lower average securitization values by receivables and greater obligor diversification.

By property type, lodging assets led the way for total delinquencies, with 6.3%, while some 3.5% of the lodging pools were current and specially serviced.

Its size exceeds the Dublin-based firm’s exposure to potential asset writedowns, signaling a looming battle with insurers over who will shoulder financial losses caused by the war.

Homes securing the portfolio produce an average monthly rent of $2,405, based on gross potential rent for vacant properties, and an average remaining lease term of eight months.

The ICE BofA US Treasury Index has fallen more than 6% so far this year, with benchmark 10-year yields climbing Tuesday toward the highest in almost three years.

Securitization would have to see more cycles before the full effect of the COVID-19 pandemic becomes apparent, but loans backing multi-borrower SFRs show more sensitivity to rent collection disruptions.

The transaction is the company’s first securitization deal, and uses cash trapping triggers and rapid amortization events for credit enhancement.

(Bloomberg) -- The steepest global bond rout of the modern era is extending as investors dump fixed-income assets on concern that aggressive central bank policy tightening will push the global economy into a recession.

Almost all of the loans, 96.9%, were underwritten on less than full documentation, and the collateral’s weighted average DTI is 37.9%.

The Fed projections showed policy makers see quarter-point hikes at each of the remaining six meetings this year, following last week’s quarter-point liftoff.

Non-QM assets overlap almost perfectly with the portion of loans, 52%, financing properties where the borrower intends to maintain as a primary residence.

Sharkey counsels CLO managers, investors and arrangers on warehouse financings, collateral fund obligations, CLO business acquisitions and portfolio sales.

Fitch Ratings puts the insured residual value of aircraft held by Russia following its invasion of Ukraine at $13 billion, though claims may be limited to $10 billion.