Diamond prices timeshare ABS as domestic travel prospects improve

Hotel travel hospitality from Adobe 575x375
By Jennifer Kang
14 Apr 2021

Diamond Resorts returned to the securitization market after a two year hiatus, pricing at one of the tightest spreads the issuer has seen to date all across the capital stack. Sources say they attribute the tight spreads to improving prospects for domestic travel, as consumers are looking to scratch their pent up urge for leisure travel by visiting nearby hotels rather than go abroad.

Diamond Resorts is a repeat issuing timeshare company that traditionally prices at wider levels than tier one names like Wyndham Destinations’ Sierra deals. Nonetheless, the company saw its most recent deal well subscribed, particularly the class ‘A’ notes that priced at 95bp over swaps. 

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