...Effect Highlight + Fitch Test Matrix: The transaction documents provide the manager the flexibility to choose certain combinations of covenants (collateral quality tests), toward which the portfolio will be managed. Certain of these covenants will be selected from the Fitch Test Matrix, which includes permitted combinations of minimum weighted average spread (WAS), minimum Fitch WARR and maximum Fitch WARF thresholds; the manager may also linearly interpolate between any two adjacent points. Neutral Dynamic WAL Covenant Subject to Portfolio Performance: The maximum WAL test will be 9.0 years and will decline over time. However, the portfolio will be managed to a WAL covenant that will be the lower of the Fitch WAL covenant from the matrix selected by the manager and the declining maximum WAL covenant. The Fitch WAL covenant can remain at the selected Fitch WAL covenant so long as key collateral quality test and par requirements associated with the selected matrix are satisfied. Once any...
