PowerPay Will Issue $350 Million in Asset-Backed Notes
The asset-backed securities deal, closing September 30, 2026, features a pool of over 21,000 consumer loans.
Updated on Sept. 25, 2026 in Personal Finance — General
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PowerPay Issuance Trust is set to sell $350.2 million in asset-backed securities backed primarily by home improvement loans. The transaction, which is expected to close on September 30, 2026, utilizes a pool of 21,209 individual loans.
Why it matters
This issuance provides the trust with a mechanism to distribute debt to investors through a structured sequential pay schedule. The deal relies on a significant credit enhancement level of 20.40% for the senior class of notes to maintain its structure.
The loan pool features a weighted average FICO score of 772, with 87.7% of borrowers exceeding a 700 score. The average loan balance is $16,851 with a weighted average seasoning of 15 months.
The players
PowerPay Issuance Trust
This entity acts as the issuer for the asset-backed security deal involving consumer loan pools.
The details
The portfolio is dominated by home improvement lending, though health and wellness services represent 5.7% of the total pool. Initial overcollateralization of 2.00% and a non-declining reserve fund of 0.50% are integrated to protect cash flow for noteholders.
Timeline
The issuance is expected to close on September 30, 2026.
The legal final maturity date for the notes is November 18, 2047.
Market Dynamics
This transaction aligns with the ongoing trend of securitizing high-quality consumer credit to manage institutional liquidity. It follows the pattern set by industry standards for collateralized debt obligations where excess spread remains a key indicator of underlying portfolio health.
Investors evaluating this offering should note the senior note credit enhancement of 20.40% and the 1.11% excess spread. These metrics impact the risk-adjusted return expectations for institutional portfolios holding the notes through their 2047 maturity.
The takeaway
The issuance reflects a robust consumer loan market characterized by high FICO scores and substantial seasoning. Prospective noteholders must monitor the 2.00% overcollateralization level as the pool matures toward its 2047 sunset.
Further reading
For more information on market-based credit vehicles, visit the Personal Finance — General section.
Source note: This article includes information reported by Asset Securitization Report.
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