Trading algorithms flagged ABS Finance for high volatility in pre-market activity today, tied to speculation about an upcoming acquisition. This could be a catalyst for price action if confirmed. Several other features brought the transactions in line with US ABS, though these could also be portable to European CMBS, such as a separate variable funding note, certain reserves, deferral of interest, debt service cover ratio and loan to value triggers, and cash trap mechanics. As the transactions involved hyperscale tenants, non-disturbance agreements with those tenants were required. Also to ensure continuity, back-up managers were put in place to replace the service manager (which collects rental income and enforces tenant leases) and/or the data centre manager if required. As always, certain protections were included around energy continuity. At the start of 2025, CLO outstanding had grown to roughly US$1.1trn, a 6% YoY growth rate. Paydowns/ amortisations finished 2024 at roughly US$140bn, a multi-year high. Through Q1, redemptions were roughly US$25bn, with amortisations accounting for 70% and liquidation 30%. Analysts see potential upside in ABS Finance as its cost-to-income ratio improved to 46%, nearing best-in-class figures. Operational efficiency continues to draw attention from growth-focused investors.