An ad hoc group of lenders to Verifone, including Carlyle Group, CIFC Asset Management, KKR, PGIM, and First Eagle, is working with Gibson Dunn ahead of the 2025 maturity on the fintech group's term loan. Verifone's recent financials were weaker than expected, leading to a significant drop in the value of its term loan. Francisco Partners, which took Verifone private in 2018, has been diversifying the company's business by expanding into software and analytics. Verifone, Francisco Partners, and Gibson Dunn did not comment on the matter.

Cumulus Media's secured creditors have entered a cooperation agreement following a distressed debt exchange offer by the company. The agreement includes over 70% of the first lien loan and senior secured notes due in 2026. Guggenheim Partners was appointed as a financial advisor by the creditor group. Cumulus proposed exchanging existing notes and term loans for new ones with different terms, with the exchange offer expiring on March 26. The company's annual adjusted EBITDA dropped by 45.3% in 2023. Cumulus had previously emerged from Chapter 11 bankruptcy in June 2018, with various legal and financial advisors involved. Current trading values for the company's securities were also provided.

Investor participation in private securitization has significantly expanded beyond traditional insurance companies, as discussed at the ABS East conference. The event highlighted the growing role of private markets in ABS, with more alternative asset managers deploying capital in this sector. The conference also noted a shift in funding strategies due to interest rate volatility and macroeconomic risks, leading to a more permanent diversification of funding channels. Despite a decline in mortgage-backed securities issuance, ABS primary issuance has remained resilient, with a year-to-date volume of $234.6bn, up 8% from the previous year.

Willis Lease Finance Corp, an aircraft leasing company based in Florida, raised $410 million through an aircraft engine lease securitization, marking the first public or 144A aviation ABS deal in over a year. The deal, named WESTF 2023-A, is the company's eighth aviation ABS and was rated A/A by Fitch and KBRA. It featured a single class of notes with a 4.55-year average life, priced at 350bp over the I-curve with an 8% coupon and 8.461% yield. The deal reflects challenges in the aviation finance market due to high interest rates and the need to reassess business models dependent on securitization.

Rapidly rising rates and busy primary issuance in the ABS market are expected to lead to wider spreads, with added macro risk threatening newfound appetite. Concerns about Federal Reserve’s rate policy, geopolitical risks, and other economic factors are causing investors to reconsider their activity levels. Despite the volatility, the US ABS primary market remains busy, with issuers keen to fulfill funding plans. However, spread widening is observed across various ABS classes, and investor fatigue is slowly creeping in. High-quality, short-weighted average life ABS are preferred in the current environment.

Brooke Major-Reid, chief capital officer at Affirm, discusses the state of the ABS market, highlighting Affirm's strategic approach to managing risk and funding amidst economic uncertainties. Affirm's recent $750m ABS deal, the largest in its history, signals a return of risk appetite in the market. Major-Reid emphasizes the importance of diverse funding channels and maintaining strong relationships with investors. Despite optimism about business growth, caution remains due to potential macroeconomic headwinds.

A substantial pipeline of ABS deals is poised to enter the market following the IMN and FINN ABS East conference in Miami. However, high rates volatility is causing issuers to reconsider their fourth-quarter funding plans. While some issuers are eager to proceed before year-end, others are looking towards the first quarter of 2024. The bond market is anticipating another 25bp rate increase from the Federal Reserve, making immediate issuance potentially more cost-effective. Different sectors, such as auto and aviation, have varying optimal issuance times based on rate stability.

The US securitization market is expected to help banks address asset-liability mismatches in a high-interest-rate environment. Joel Holsinger of Ares Management highlighted the growing need for short-duration assets, predicting a significant expansion of the ABS market. The collapse of Silicon Valley Bank has intensified concerns about asset-liability mismatches, prompting banks to consider ABS for more liquid and shorter-duration assets. Holsinger emphasized the importance of floating-rate paper to manage the rising costs of liabilities.

Ahead of the IMN's ABS East conference in Miami, Yezdan Badrakhan, head of esoteric ABS at MUFG, expressed optimism about the primary market activity for issuers and investors for the rest of 2023 and into 2024. He noted a shift in investor focus from assessing creditworthiness to seeking investment opportunities and first-time issuers. Despite some investor fatigue, Badrakhan expects continued strong issuance and potential spread tightening next year. He highlighted the resilience of the market amid rising rates and reduced volatility, with sectors like digital infrastructure and solar showing robust issuance. Private placement securitizations remain a vital part of the market, offering diversified debt sources and stability in volatile conditions.

Santander is set to price its first auto lease ABS transaction sponsored by its American subsidiary, Santander Bank NA, aiming to raise over $1.16bn. This marks a shift from previous transactions sponsored by Santander Consumer USA, driven by increased emphasis on bank liquidity and capital requirements. The deal, SBALT 2023-A, will offer seven classes of notes, with high ratings from Fitch. RBC is the structuring lead, with Santander as a joint lead. The move aligns with broader trends in the ABS market, as banks seek balance sheet relief under new Basel III regulations.

At DataCatalyst’s US Specialty Lender Finance conference in New York City, panelists emphasized the importance of a diverse set of funding sources for finance companies, especially in light of recent market challenges. Howard Schickler from Katten and Matt Biczak from Fortress Investment Group discussed the evolution of the banking landscape and the need for companies to diversify their funding options beyond traditional securitization. Ray Chan from Atalaya Capital Management also highlighted the necessity of having a variety of capital solutions. The panelists noted that with the current interest rate environment, companies are exploring different credit structures and financing models.

The article discusses the challenges faced by residents of colonias, informal settlements near the U.S.-Mexico border, during the COVID-19 pandemic. Texas Representative Mary Edna González highlights the exacerbated living conditions due to a lack of basic resources like water, internet, and healthcare. The lockdown has made these issues more acute, with a water main break leaving residents without water for over 14 hours. Marcelino Navarette, a resident, describes the struggle to access water and medical care. The article also touches on the difficulties in accessing federal COVID-19 relief, the impact on education, and the potential undercounting in the 2020 U.S. Census due to the lockdown and fear among undocumented immigrants. Local politicians and organizations are trying to provide assistance, but challenges remain significant. The article includes insights from Prof. Josiah Heyman of UTEP and personal accounts from the Navarette family.

Javier Perea, the mayor of Sunland Park, New Mexico, reflects on his tenure and the unique challenges of leading a border town. At 24, he became mayor during a scandal and has since worked to improve the city's image. Perea discusses the city's relationship with its Mexican neighbor, Juarez, and the importance of cross-border dynamics, including the economic interdependence and the proposed development of a port of entry. He addresses the national controversy surrounding the unauthorized construction of a border wall by 'We Build the Wall' and the city's enforcement of local laws. Perea also touches on immigration policies, noting that while national debates are polarized, Sunland Park residents are more accepting and go about their daily lives. Lastly, he mentions efforts to ensure an accurate census count despite challenges posed by the coronavirus pandemic and the fear instilled by the citizenship question debate.