FC Funding is returning to the asset-backed securities market to raise $450 million, supported by a pool of auto loans. While these receivables can be described as non-prime—they have a weighted average, non-FICO score of 586—Flagship Credit remains committed to tightening its origination strategies to focus on higher-tiered borrowers.
The current transaction, Flagship Credit Auto Trust, 2023-2, or FCAT 2023-2, is supported by better performing tiers of loans, compared with the FCAT 2023-1, according to a pre-sale report from Kroll Bond Rating Agency. Indirect originations account for 82.9% of the collateral pool, compared with 80.7% of the FCAT 2023-1 assets.
