...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 weighted WARF thresholds; the manager may also linearly interpolate between any two adjacent points. Neutral Ability to Switch Fitch Test Matrix: The manager will have the option to switch between Fitch Test Matrices 1 or 2 when the portfolio WAL value is less than or equal to 7.01 years and the collateral principal amount (CPA) is at least $346.5 million (99.0% of the reinvestment target par balance). This optionality gives the manager more flexibility as the transaction starts to amortize and the risk horizon shortens, provided that the Maximum Fitch Rating Factor Test, the Minimum Weighted Average Fitch Recovery...
