NAVSL 2014-8 began marketing last week and was upsized by $258 million on investor demand; the 6.3- year senior bond priced at a spread of 60 basis points over one-month Libor.
The one-year, fixed-rate and floating-rate senior bonds priced at a spread of 40 basis points over the EDSF and 40 basis points over one-month Libor, respectively; that's 8 basis points wider than equivalent tranches of the issuer's September transaction.
The single tranche of series 2014-8 Class A notes have a scheduled principal payment date of November 2016 and a legal final maturity of November 2018. They will pay a floating rate of interest pegged to one-month Libor.
Compared to recent Nisan and Volkswagen ABS, the deal has lower enhancement and borrower FICOs but greater seasoning and lower remaining terms for its loans.
The facility will be used to finance the acquisition of student loans portfolios, including the one $8.5 billion deal reached with Wells Fargo last week.
Regulation AB governs registration, reporting and disclosure requirements for all things asset-backed. The Securities and Exchange Commission appears to be ready to update it significantly, but, nearly four years after changes were originally proposed, its not clear exactly what the Commission will do.
The swelling trillion-dollar student loan market is missing key data and regulations necessary to head off another financial crisis, according to Rohit Chopra, the Consumer Financial Protection Bureaus top official in charge of dealing with student loans.
The proposal would introduce dissemination of trade prices for securities ranging from highly liquid credit card and auto ABS to smaller and more esoteric deals in asset classes such as time shares, to commercial mortgage-backed securities (CMBS) and highly structured CDOs and collateralized loan obligations.
Overall issuance growth will moderate in 2014, Fitch Ratings' managing director for asset backed securities says in the firm's outlook.
Direct exposure to either J.C. Penney or Sears is typically highest in seasoned deals where there are only a small number of loans remaining, and one is secured by a retail property.
Vice President of Regulatory Compliance
Firm: Clayton Holdings
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Investors in catastrophe bonds are broadening their exposure by taking on multiple perils and increasing the time period during which claims can be included in coverage. Often they are doing so without any additional compensation.Current Issue