easy · Asset-Backed Securities collateral

What does this mean for a 2026-1 vintage deal in its second year?

1. Rating agencies will only assign a rating to the deal if cumulative net losses remain at exactly zero through month 36.
2. The highest rate of defaults is expected to occur relatively early (e.g., months 12 to 24) rather than late in the deal's life.
3. The deal will post zero cumulative losses through its first two years, with defaults concentrated at final maturity.
4. The servicer is contractually permitted to front-load its fee income, collecting half of the deal's total servicing fees within Year 1.

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