Reposted from 6.10.19 Bloomberg article:

“Cumulative gross issuance of whole-business securitizations reached about $35 billion at the end of 2018, compared with about $13 billion just four years earlier, according to S&P. The past two years have been banner years for the structures, with $7.9 billion offered in 2017 and $6.6 billion last year, according to data from Bloomberg News’s Charles Williams.

Wendy’s credit rating is five levels below investment grade from S&P and Moody’s Investors Service, yet its ABS are triple-B. That’s the same rating as Dine Brands got on its recent offering. “Dine’s asset-light business model provides us with access to the attractive securitization market,” Thomas Song, the company’s chief financial officer, said in a statement.

In the post-financial-crisis world, it’s easy to be immediately skeptical of anything that looks like a somewhat new and complex structured product. In reality, most transactions are done for smart and specific reasons…

Methodical LLC 2 Park Avenue 20th Floor New York, NY 10016 212.485.8910