Securitization

The REIT was successful in achieving all of its near-term goals, its CEO said in an earnings call.

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

Mortgage bonds get hit hard when there's growing uncertainty about the direction of rates, due to the election, because their returns depend so much on it.

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.

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.

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%.

Atlas SP Partners — the structured finance business that's key to Apollo Chief Executive Officer Marc Rowan's plan to become a lending machine — has struggled under its new owner since last year's acquisition.

T-Mobile is broadly syndicating $500 million of securities, and the total size of the securitization is $561.34 million.

The company has done 10 of these transactions, and its track record on paying them off shows how successful it has been, Morningstar DBRS noted in a presale report.

In the non-prime pool, owner-occupied properties account for most of the assets, at 55.1%; the amount of investor properties represents 41.6% of the deal.

Investors began pulling funds rapidly after it disclosed last month the departure of Chief Investment Officer Ken Leech amid Justice Department and Securities and Exchange Commission probes into its trading practices.

A trigger occurs if the reserve fund is less than 50% of the reserve fund target amount, or if the payment date where the outstanding HEA valuation is less than 80% of the starting home valuation.

More "Airbnb-style" rental property loans are making their way into non-qualified mortgage securitizations and could they be acting differently from the traditional non-owner occupied loans, a Standard & Poor's report asks.

Pricing talk includes yields ranging from 4.9% on the AAA, class A1 notes; 5.7% on the AA, class A2 notes; and 6.2% on the AA M1 notes.

The government agency's new issuances in August totaled over $40 billion, marking a high not seen since late 2022.

Issuance of CMBS has been torrid recently, with overall sales this year through Monday of $69.7 billion.

Treasuries have returned 1.7% this month through Aug. 28, on pace for a fourth straight monthly gain, according to the Bloomberg US Treasury Total Return Index.

Issuance of new mortgage-backed securities guaranteed by Ginnie Mae has returned to levels last seen during the year monetary policymakers began raising rates.

The Swiss bank claims that Countrywide is obligated to indemnify it for legal expenses stemming from risky mortgages bundled pre-2008.

Mortgage bonds tend to lag Treasuries when it's unclear where rates are going, because changes in yields can have a big impact on how many borrowers refinance their home loans.