Securitization

With limited seasoning and primarily a clean payment history, OBX 2026-NQM1 had a seasoned probability of default of 33.3% among the AAA stresses and 11.4% among the B.

Late last year, commercial bank holdings of mortgage paper reached the highest level since 2023 as these depositories are flush with deposits.

Keefe, Bruyette & Woods attributes Fannie Mae and Freddie Mac portfolio growth for the narrower spreads, but other reasons include lower volatility.

Initially, all the class A notes will benefit from total hard credit enhancement that represents 6.10% of the note balance, and the components give the notes a strong credit boost.

The pool of mostly multifamily properties has a cap rate of 9.49%, and an LTV rate of 75.1%.

The dollar volume of unsecured consumer loan rose dramatically. But as consumer lending rises, so do the default risks.

Despite a limited representation and warranty framework, the entire pool has experienced third-party due diligence, which reduces the risk of future violations.

Signs point to less aggressive uptier LMEs while sponsored borrowers pursue new structures to circumvent restrictions.

A significant portion of the loans in the pool by balance, 44.5%, are designated at non-QM, according to DBRS, adding that about 50% of the loans in the pool were made to investors for business purposes.

Among changes from the PAID 2025-8 transaction, the current deal has a 24-month revolving period when eligible collateral can be purchased.

Janus brought several innovations to the asset management market, including the asset-backed securities ETF (JABS) and the fixed-rate CLO ETF (JAAA).

FAT Brands warned in late November that it could be forced to file bankruptcy after creditors demanded full repayment on its roughly $1.2 billion of whole-business securitization debt.

Principal will be distributed pro rata among the senior A1 through A3 certificates, and subordinate bonds will not receive any principal until all senior classes are reduced to zero.

As climate-fueled urban fires become a more regular occurrence, insurers and utilities are increasingly looking for ways to offload their risk to capital markets.

Monthly excess spread will confer credit enhancement to the notes, KBRA said, and while it will be released it will not be available as credit enhancement in future payment periods.

CLIF Holdings' capital structure includes overcollateralization and a liquidity account of $1 million.

Discrepancies were ultimately flagged not by regulators or auditors, but by a junior analyst at Waterfall Asset Management, one of Tricolor's lenders

PMT 2025-CNF2 is not required to provide advances of schedule interest and principal on loans that are delinquent by 120 days or more.

The indictment accuses Daniel Chu and other executives who had worked at Tricolor of operating the company through "systemic fraud."

The acquisition forms the eighth largest mortgage servicer nationwide, with a combined $400 billion in mortgage servicing rights.