Walter Investment will benefit from the increased capacity available under the facility, and also from the facility's lower interest rates and higher advance rates
, which will enable the company to finance a larger portion of its advances.
In addition, generous loan advance rates
and competitive interest rates are often available using these SBA programs.
This transaction reflects the continuing signs of strength in the asset-backed securities market, evidenced by higher advance rates
and the ability to issue subordinated bonds at attractive financing rates," said Tom Conforti, executive vice president and chief financial officer, Wyndham Worldwide.
In our example, the finance company offers advance rates
of 90% and 60% against receivables and inventory, respectively, and the bank offers 75% and 25%.
for asset-based lending deals historically were based on the forced liquidation value of the borrower's inventory--how much the inventory would bring if it were sold in bulk to wholesalers, competitors or liquidators.
The advance rates
are typically 85% for receivables and 50% for inventories.
NEW YORK -- The advance rates
and reserve fund amounts in the most recent American Home Mortgage servicer advance receivable transaction (AHM SART 2011-1) are inconsistent with Fitch Ratings' criteria for achieving an 'AAA' rating.
Additionally, the company will restrict contracts with higher advance rates
and longer terms.
The market value trigger for the class A notes is in line with Fitch's 'B' advance rates
for this structure, with a combined DFT and DTT metric of approximately 29%, up from 19% in the last review.
The allocation of investments will be determined by the investment advisor and will be subject to limitations established through advance rates
and specific investment restrictions.
Based on Fitch's classification of the assets, the market value trigger is in line with Fitch's 'BBB' advance rates
for this structure.
The advance rates
assume that the aircraft collateral would have to be liquidated under adverse market conditions in order to repay the certificates.