Securitization

The deal taps into insurers' growing demand for long-dated private credit investments. More than a dozen investors, are set to participate in the transaction.

The collateral's annual percentage rate, loan-to-value and debt-to-income rates all decreased compared to the PART 2024-2 transaction.

Among its structural strengths, DEFT 2025-1 includes a non-declining reserve account representing 1.0% of the pool balance.

Yields, are expected to come in ranging from 4.4% on the class A notes, to 4.5% on the class A4 notes.

The move comes as bonds Saks sold to finance its $2.7 billion acquisition last year have lost more than a third of their value since they were issued in December.

A vast majority of borrowers have either graduated from one of MPOWER's eligible graduate degree programs in science, technology, engineering and math (STEM) or business.

EFF 2025-2 will allocate revenue collections to the notes on a pro rata basis between the class A notes and the seller's interest after overcollateralization reaches its target.

Scrutiny will be particularly strong on the results of the $70 billion five-year auction on Wednesday because over 60% of foreigners' holdings are concentrated at that maturity or less.

The capital structure includes amortization triggers based on cumulative net loss levels and material modified loan ratios.

The sponsor launches the deal after a period of increased originations in marine and recreational vehicle loans, will secure the notes.