Securitization

Aside from the pool primarily made up of second and junior liens in the pool, 82.2% of the loans were underwritten with alternative documentation.

A vast majority of the deal, 87.17% of the collateral, as a percentage of the assets' principal balance, has a 60-month original term to maturity.

Blue Own Asset Leasing's notes benefit from a reserve account representing 1% of the pool balance, overcollateralization, and a senior-subordinate repayment structure.

The heavy issuance partly stems from banks offloading loans from their books ahead of new capital rules.

All the assets benefit from Federal Housing Administration insurance a sequential payment structure and the subordination of servicer advances, if there is no servicer termination event.

Local Law 79 affects roughly 15,000 commercial real estate buildings in New York City, a market ripe for securitization.

The notes receive credit enhancement from overcollateralization, and an initial reserve.

Yields across maturities rose at least four basis points, reaching the highest levels in more than two months, after the monthly auctions of two- and five-year Treasury notes both drew higher-than-anticipated yields.

The assets are composed of seasoned mortgage loans financing a range of residential property types.

An independent valuation said that the total catalog is worth about $2.36 billion, based on projected cash flow from the assets. More than 70% of the songs were released more than 10 years ago.