1. KBRA assigned preliminary ratings to Santander's $283.8 million mortgage-backed notes. 2. 59.1% of the loans are exempt from ATR/QM rules, indicating risk.
While the assignments may strengthen SAN's trading position, the high loan-risk profile could deter investors, reminiscent of other RMBS transactions that faced negligible market reactions amidst high exemption rates.
The preliminary ratings and loan profiles show potential risk, but the details might not substantially impact SAN given market uncertainties.
This rating may influence SAN's immediate trading environment, but long-term effects depend on broader economic factors, as seen in previous RMBS deals with similar structures.