Bankers Healthcare Group is preparing to raise $396.7 million in asset-backed securities (ABS) from investors, secured by a pool of payments on consumer loans extended to prime-quality, high-income professionals such a attorneys, financial advisors and accountants.
The BHG Securitization Trust, series 2026-3CON, will issue five tranches of notes, classes A, B, C, D and E, which all have a legal final maturity of Nov. 17, 2037, according to Fitch Ratings. The class A notes will issue the bulk of debt from the deal, $210.3 million, with a credit enhancement level of 48.00%, Fitch said.
Also, the deal continues BHG’s more recent streak of securitizing loans collateralized exclusively by consumer loans. The deal is the program’s sixth term 144A securitization backed by consumer loans. Either Pinnacle Bank or County Bank originated the underlying loan assets, as of the Sept. 24, 2026 cutoff date, with the banks accounting for 75.45% and 24.55% of the pool balance, respectively, according to analysts at Kroll Bond Rating Agency.
Capital One Securities is the deal’s lead underwriter.
BHG 2026-3CON will repay noteholders sequentially, and the class A notes receive principal payments prior to all subordinate notes. Each class has a required overcollateralization level, according to KBRA. When the deal hits that level, the next subordinate class will begin receiving principal payments, according to KBRA.
The senior classes benefit from subordination, except the most subordinated class, KBRA said.
Also, BHG 2026-3CON benefits from a cash reserve account funded at closing representing 0.50% of the initial pool balance, KBRA.
Fitch finds that the notes rated AAA, AA-, A-, BBB- and BB- benefit from credit enhancement levels of 48.00%, 25.40%, 14.40%, 6.60% and 1.50%, respectively.
The rating agency also find that the notes have a base case default assumption of 12.31%.
Among the deal’s positive credit highlights, Fitch said that asset performance in BHG’s managed portfolios has seen a marginal improvement in delinquencies and gross defaults beginning in 2023 and in the 2024 vintage. Fitch notes that BHG’s more recent initiatives resulted in enhanced credit performances in the managed and securitized pools.
Looking deeper into the pool of 4,000 loans, Fitch finds that the pool has an average current balance of $100,183, borrowers have a (weighted average) FICO score of 731, and WA income of $262,859.
