Global Covered Bonds
Hélène Heberlein explains the recent trend in covered bonds ratings and what the upcoming covered bonds regulation will mean for ratings.
Euan Gatfield, discusses the continued developments in the European CMBS market, exploring the asset types and jurisdictions likely to have an impact on deal activity. According to Euan, the Private Rental sector is the one to watch
Emmanuel Bulle and Markus Papenroth discuss the impact of changing regulation on the European Auto and Auto-ABS sectors. The scale and timeline to full electrification in Europe remains uncertain, according to Emmanuel, but European Auto manufacturers still have a lot of rating headroom.
Chinese Structured Finance
China's structured finance market has grown from virtually nothing in 2013 to over US$200billion in 2017. Hilary Tan, China SF Group Head, discusses the developments and impact of growing household debt.
The commercial real estate cycle is nearing the end of its customary 10-year cycle, but Huxley Somerville, U.S. CMBS Group Head, says certain developments are making it resemble a cycle more at its midway point.
A spike in new private label RMBS issuance has surfaced of late along with, as Grant Bailey, U.S. RMBS Group Head discusses, some credit risk trends that are worth watching in the coming months.
Asia-Pacific Covered Bonds
Claire Heaton speaks with Ben McCarthy about the development and features of the Asia-Pacific covered bond market, types of issuance, credit and structural risks, and potential new markets in the region.
The new generation of 2.0 CLOs have been more restrictive on managers. Matthias Neugebauer believes this may lead to less flexibility around restructuring in the next downturn which could in turn affect performance.
Grant England and Alessandro Pighi compare and contrast the trends in the UK and continental European mortgage markets and discuss how Fitch approaches the rating of new lenders in the European RMBS space. Incentives, lending policy, target customer base and operational capability are all key areas Fitch looks at when rating RMBS from new lenders, according to Grant.
Supply and demand imbalances in the leveraged loan market are leading to what Kevin Kendra, U.S. CLO Group Head, calls some late cycle credit behaviors that investors should keep a close eye on.
The U.S. consumer has become more aggressive with taking out numerous forms of debt in recent months, which Hylton Heard, U.S. ABS Group Head, says will impact U.S. ABS performance to varying degrees.