KBRA Releases Key Takeaways from the ABS East Conference in Miami

NEW YORK--(BUSINESS WIRE)-- Kroll Bond Rating Agency (KBRA) has released a new Structured Finance research report titled “ABS East Takeaways: Good Vibrations.” The report makes the following key points:

• Among the investors and issuers we spoke to, the mood appeared generally positive. Demand appears to outpace supply, which should be supportive of spreads through the remainder of the year, despite a more hawkish Fed outlook and the start of balance sheet normalization in October. There also appeared to be increased focus on off-the run asset classes given the opportunity to pick-up additional yield in the current low spread environment.
• In terms of credit fundamentals, investors had little anxiety concerning the health of U.S. consumers given low unemployment and healthy DTI levels. However, commercial real estate investors continued to express uneasiness about the state of U.S. retail, especially in light of the Toys ‘R’ Us bankruptcy.
• The effects of Hurricanes Harvey and Irma were a consistent theme. Most issuers we spoke with have evaluated their exposure to the affected areas and felt any resulting negative performance would be manageable.
• Policy and regulations commanded a good deal of attention given the new administration’s priorities and last week’s FOMC meeting. Specifically, the potential for amendments to current risk retention rules, as well and the extension of Reg AB II asset level discourses outside of auto loans and leases, were discussed in length.

To access the full report, click here.

Related Publications: (available at www.kbra.com)

• U.S. Auto Market Update - Deconstructing Headline Loss Rates
• Mortgage Rates Creating Ripples In RMBS 2.0
• CMBS August Trend Watch

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About Kroll Bond Rating Agency

KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).

View source version on businesswire.com: http://www.businesswire.com/news/home/20170925006271/en/

KBRA
Analytical:
Brian Ford, CFA, Structured Finance Research
(646) 731-2329
[email protected]

Source: Kroll Bond Rating Agency

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