Credit Suisse’s first commercial mortgage securitization of 2016, to be issued from its CSAIL trust, pools a considerably smaller number of loans relative to the sponsor’s previous two deals.
A smaller pool creates greater concentration of risks for investors.
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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.
A new cohort of lenders, Dort Financial Credit Union, Gesa Credit Union and Liberty Federal Credit Union originated the loans and contributed them to the collateral pool.
Classes A-1FCF and A-1LCF, the first-and last-cash flow tranches, will receive sequential payments, while the A-1A and A-1B certificates will be repaid on a pro rata basis.
The SEMT 2026-S1 loan count is slightly larger, compared with 671 loans in the SEMT 2025-S2, but they have a lower average loan balance, which seems to track with borrowers' lower median income.
While positive results, including cures and resumed payments, still outpace the poor ones, the gap in the most recent dv01 study narrowed from 12 months prior.
