Securitization

The whole business deal, built around a master trust structure, will be repaid primarily from franchise royalty revenue.

The three class A notes, A1, A2 and A3, of GCAR 2026-2 notes will all benefit from hard credit enhancement levels, plus haircut to excess spread of 56.07%.

Irrespective of the transaction's trigger status, PRKCM 2026-AFC3 will pay the A-1FCF first, until its balance is reduced to zero, and then to the A-1LCF until it is paid down.

Bank statement underwriting, often applied in situations where the borrower is self-employed, accounted for the plurality of documentation types in the pool, at 44.9%.

The deal saw notable changes from SCLP 2021-1, especially an increase in target and initial overcollateralization.

Tower Point Capital, the deal's manager, is considered to have one of the largest privately held wireless infrastructure portfolios in the U.S.

Non-qualified loans are the majority of loans in the pool, 59.2%, while loans exempt from the Ability-to-Repay/Qualified Mortgage rule, represent 35.9%.

February's securitization from Vertical Bridge was the sector's largest-ever deal and included the sector's first single-B rated tranche.

Any additional securities that the transaction issues will rank equally with the class that has the same class designation.

Initially, the transaction will follow a sequential repayment structure that requires each note class to reach a required overcollateralization percentage before the next subordinate class begins receiving principal.

Notes will be backed by royalties from a music catalog containing more than 3,750 works from top artists and songwriters, including Diplo and ZZ Top.

Mpower's plan to sell nearly $250 million of bonds hit a hurdle after some potential investors spooked by Trump's policy shifts balked during the effort's early pitches.

A five-year-loan is financing Lyrik, a 495,275-square-foot, 20-story office tower, plus 38,012 square feet of retail space in Boston's Back Bay area, a premiere office submarket.

Analysts expect the pool to be composed of receivables primarily from franchise dealers that offer indirect financing to consumers often overlooked by traditional financing sources such as banks.

KBRA noted that debt service coverage ratio underwriting accounted for the largest portion of the loans in the pool, 35.0% and 52% of borrowers in the pool are self-employed.

The benchmark on the class A2 could change under certain circumstances, and the maximum allocation to the A2 notes will be 50% of the overall size of the A class.

Basel III recalibration cuts commercial real estate risk weights, unlocking $100 billion in bank lending capacity.

Recent securitizations have seen a shift toward sport-utility, crossover utility and electric vehicles, as well as higher concentrations of the Kia and Genesis brands.

Schwartz advises clients on convertible 144A offerings, as well as private investments in public and private companies.

Iskandar and Kaveh have a liquidity reserve of about $16.3 million at closing, and a cash-trapping trigger if the three-month average class A debt service coverage ratio (DSCR) falls below 1.45x.