KBRA Affirms the Ratings for TruPS Financials Note Securitization 2018-2
2 Oct 2024 | New York
KBRA affirms the ratings for three classes of notes of TruPS Financials Note Securitization 2018-2 Ltd (TFINS 2018-2).
TFINS 2018-2 is a static cash flow CDO and will not allow for any reinvestments in the portfolio. The collateral consists of trust preferred securities (TruPS) and subordinated debt issued by community and regional banks and their holding companies, along with TruPS, surplus notes, surplus notes, and senior unsecured notes issued by insurance companies and their holding companies.
The initial portfolio at closing consisted of 73 assets from 62 obligors with a total collateral par value of $351.0 million and liabilities of $298.3 million. It now contains 45 obligors with a total performing par value of $266.2 million and liabilities of $226.1 million. The balance and liabilities have both dropped by $4.1 million since last year’s surveillance, while $12.6 million of defaults were recognized in the past year. The decrease in the Note balances can be attributed to the underlying asset prepayments. The deal maturity is on 30 Sep 2039. Since last year, the K-PD, which adjusts for the asset tenor, increased from 8.9% to 9.0% while the WAL decreased from 10.6 to 9.8 years.
The surveillance used information through the June 2024 payment date. All rated notes have received timely interest payments since the transaction closed.
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