Securitization

The deal will repay investors on a hyrid pro rata, sequential basis. Credit enhancement ranges from 51.7% on the class A1A notes to the 2.25% on the class B2 notes.

Looking to raise €245 million ($264.2 million) in securitization bonds, Golden Ray will offer eight tranches maturing in December 2057.

This is the first RTL transaction for Roc360 Real Estate Income Trust, the deal's sponsor, in three years. Also, it is Roc360's first rated RTL transaction.

PAID 2024-PT1 follows a repayment sequence where funds are released to certificate holders after the control class has been paid down to maintain required levels of overcollateralization to the deal.

The fixed-rate notes are expected to yield 4.90% on the A1 notes through 5.29% on the class D notes.

The country hopes developing a secondary market for mortgages would allow banks to offer borrowers lower interest rates and improve the cost of home ownership.

The current pool has the largest proportion of longer-term loans, at 49.8%. While this is a concern for analysts, the rest of the industry has seen this kind of increase.

The $120 million deal is larger than the inaugural transaction from 2023, and includes expandable notes, plus a 36-month revolving period.

The trust features early amortization event triggers, including excess spread percentages falling below the required amount for that period or principal payment rates falling below 10%.

Underlying borrowers have accumulated significant amount of home equity in their homes, to a weighted average (WA) original cumulative loan-to-value (CLTV) ratio of 69.5%.