NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) releases the Structured Finance 2020 Outlook: Cruise Control … For Now, which examines recent structured finance credit trends and supply expectations.
Looking forward to 2020, we believe tight labor markets and meaningful consumer deleveraging will likely be supportive of ABS and RMBS fundamentals, helping to keep delinquency and loss rates well behaved next year. Meanwhile, strong tenant demand and subdued construction activity should broadly support rising rents and CRE valuations. We are somewhat less bullish on the structured credit sector, however, given the rise in corporate leverage and heightened downgrade risk for single-B rated credits—both of which could weigh on CLO performance next year. That said, we do not expect any meaningful uptick in loan defaults next year, due to the low interest rate environment, a dovish Fed, and growing economy.
To view the report, click here.
Related Publications: (available at www.kbra.com)
- ABS 2020 Outlook: More of the Same
- 2020 CMBS Outlook: This Time Is Different?
- 2020 RMBS Outlook: The Year Non-Prime Takes the Lead?
- Structured Credit 2020 Outlook: Nearsighted Vision
About KBRA and KBRA Europe
KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.
Brian Ford, CFA, Structured Finance Research
Jason Lilien, Managing Director
Ted Burbage, Managing Director
Michele Patterson, Managing Director