Just fat fingered an informative post. Not redoing. Condensed version:
UPST securitized about $650 million of loans, reported by KBRA on June 3. Brings this quarter’s amount to over $1 billion. Since September 2021 the note coupon has increased from 1.61% to 6.37% while the collateral interest rate has increased from 15.75% to 19.99%. In calendar Q3 2021 they securitized $1.3 billion, the only other quarter over $1 billion.
Sorry, I lost the link to the KBRA report…
I am massively cash. Been trading a bit. Bought back some UPST Monday.
Your broken toy,
KC
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I can’t find the 6/3 report, but this is the 5/19 Press Release;
KBRA Assigns Preliminary Ratings to Upstart Securitization Trust 2022-2
May 19, 2022 03:54 PM Eastern Daylight Time
NEW YORK–(BUSINESS WIRE)–KBRA assigns preliminary ratings to one classes of notes issued by Upstart Securitization Trust 2022-2 (“UPST 2022-2”), a $545.12 million consumer loan ABS transaction with KBRA rating the Class A notes totaling $365.638 million. The preliminary rating reflects initial credit enhancement level of 41.24% for the Class A notes. Credit enhancement consists of overcollateralization, excess spread, a non-declining cash reserve account and subordination.
UPST 2022-2 represents the 38th ABS securitization collateralized by unsecured consumer loans originated through the online platform operated by Upstart Network, Inc. (“Upstart” or the “Company”) and the seventeenth from the Upstart Securitization Trust (“UPST”) ABS program. UPST is sponsored by Goldman Sachs and is separate from other securitization vehicles containing collateral originated through Upstart including “UPSPT”, sponsored by Jefferies, LLC and “USPTT”, sponsored by an affiliate of Credit Suisse Finance LLC. Upstart was established in February 2012 and operates an online marketplace lending program (www.upstart.com) and a white label technology licensing service (collectively, the “Upstart Platform” or the “Platform”) that allows financial institutions and other potential partners to leverage Upstart’s online application flow, machine learning credit model, verification process and other technology to originate loans according to their own underwriting standards.
The loans in the collateral pool are originated by Cross River Bank and FinWise Bank. As of the statistical cutoff date, borrowers in UPST 2022-2 have a weighted average interest rate and weighted average FICO score of 19.99% and 652, respectively. The collateral pool has a weighted average original term of 57 months and a weighted average seasoning of 4 months.
KBRA applied its Consumer Loan ABS Global Rating Methodology, as well as its Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology as part of its analysis of the portfolio pool data, underlying collateral pool and capital structure. KBRA considered its operational reviews of Upstart, as well as periodic update calls with the Company. Operative agreements and legal opinions will be reviewed prior to closing.
Click here to view the report. To access ratings and relevant documents, click here.
I can’t find the 6/3 report, but this is the 5/19 Press Release;
Interesting, the press release came out weeks before the three reports. The reports I looked at require a KBR subscription. I am in a normal state of confusion. I subscribed to “financial institutions” but the press release you posted says that this is a “consumer ABS”. So, I changed my request to that. In any case, it shows an ongoing appetite for UPST ABS’s. And of course I realize that UPST is not a financial institution… Oh well.
Still looking to buy UPST below $43.10. Might get there today.
KC
Still looking to buy UPST below $43.10. Might get there today.
Put the order in at $43.10 and it went below for some minutes around 12:30. I had a sell order at $48.95 that expired. I think the next buy order will be $38 to $39. My port is 8% UPST and 83% cash. Trying to get UPST to the full targeted percentage. Going to have to “buy 2, sell 1” on these trades and maybe put a good for 60 day order in for under, say, $38 to go full position.
CRWD and ZS are not cooperating. Creeping up from my sell point. DDOG and the rest are slightly lower, but not at interesting prices.
KC
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