ABS & Mortgage Credit Weekly: Value in Aircraft ABS and RTL

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ABS & Mortgage Credit Weekly: Value in Aircraft ABS and RTL

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31 Jul 2026 16:11:53 ET │ 25 pages

ABS & Mortgage Credit Weekly

Value in Aircraft ABS and RTL

CITI'S TAKE

Eugene Belostotsky AC

Recent-vintage aircraft single-A seniors at mid-100bp offer value, in our +1-212-816-8432

view. Compared to pre-pandemic deals, collateral is younger, mostly eugene.belostotsky@citi.com

narrow-bodies, and leases are longer. Rated RTL offers similar spread to

non-QM mezz, but with higher enhancement and less extension risk. Isabella Chen AC

+1-212-723-0039

Aircraft ABS Supply is Flying Again — Aircraft ABS issuance is recovering strongly, isabella.chen@citi.com

with YTD volume of $12B already surpassing the FY 2019 record. Recent aircraft AC John Jenkins, CFAlease securitizations offer improved collateral quality relative to pre-pandemic

deals, including newer aircraft and longer lease terms, and more senior-friendly +1-212-816-3418

waterfalls. john.jenkins@citi.com

Maria Zhang ACPost-Pandemic Aircraft Deals are Performing — We prefer to analyze aircraft

securitizations as operating businesses, rather than LTV-based lenders. We rank all +1-212-816-4213

deals leverage ratios. All but one 2020 and later vintage aircraft lease deals are maria.yunxi.zhang@citi.com

receiving scheduled principal across the stack.

With thanks to

RTL Relative Value — Rated RTL securitizations offer compelling relative value vs Daniel Oliva

equivalent rated non-QM mezz, with comparable spreads but higher credit

enhancement and lower extension risk. Structural complexity, collateral drift, and

limited secondary liquidity remain key risks to monitor.

RTL Round-Up — 2026 YTD issuance of $2.7B is pacing in line with 2025.

Remodeling market fundamentals remain supportive despite cost pressures. KBRA