Both consumer and corporate structured finance obligors will benefit from falling interest rates and moderate economic growth, although high costs will keep straining some borrowers’ finances. In this episode, we’ll discuss other factors contributing to the Moody’s Ratings outlook for the sector in the year ahead. 

Host: Aaron Johnson, Vice President – Research Writer

Guest: Annabel Schaafsma, Managing Director, Global Structured Finance

As regulators bolster copyright protections amid widening artificial intelligence use in the music industry, music royalty ABS issuers and other copyright holders will benefit from the protections.

Speaker: Giyora Eiger, VP-Sr Credit Officer at Moody's Ratings

Host: Aaron Johnson, VP-Senior Research Writer at Moody's Ratings

Related Research:

• Music Royalty ABS and Music Companies – US: Protecting voices and copyrights from AI misuse will aid ABS and music companies

High rates and inflation will continue threatening consumers’ ability to pay their debts in some regions in the coming months, but solid job growth will temper the negative effect on performance.

Speakers: Nick Monzillo, VP-Senior Analyst at Moody's Ratings; Gaby Trinkaus, Senior VP/Manager at Moody's Ratings; Gracie Zhou, VP-Senior Analyst at Moody's Ratings

Host: Aaron Johnson, VP-Senior Research Writer at Moody's Ratings

The use of artificial intelligence in collateral underwriting comes with both benefits and risks to structured finance transactions, while jurisdictions take different approaches to AI regulation.

Speakers: Peter McNally, VP-Sr Credit Officer at Moody's Ratings; Johann Grieneisen, VP-Senior Analyst at Moody's Ratings

Host: Aaron Johnson, VP-Senior Research Writer at Moody's Ratings

Related Research:

• Artificial Intelligence - Structured Finance: AI used in asset origination brings benefits, risks and regulatory scrutiny

As the regulatory environment continues to evolve, US and European banks have sought regulatory capital relief by offloading the credit risk of loans they make via special types of transactions.

Guests: Warren Kornfeld, Senior Vice President at Moody's Ratings; Nick Monzillo, VP-Senior Analyst at Moody's Ratings; Frank Cerveny, VP-Senior Research Analyst at Moody's Ratings

Host: Aaron Johnson, VP-Senior Research Writer at Moody's Ratings

Related reports:

• Auto ABS - US: Credit-linked notes include risks not seen in typical auto ABS; issuance is rising
• Banks and Structured Finance – US: Risk transfer gives banks protection, but more capital is better; ABS implications vary
• Banks and Structured Finance – Europe: Output floor proposal could erode benefits of SRT for regulatory capital and risk management purposes

Should European non-bank direct lenders turn to collateralized loan obligation financing, transaction collateral will likely reflect the wide range of borrowers to which private credit lenders cater.

Speakers: Sean Marion, MD-EMEA Structured Finance at Moody's Ratings; Shan Lai, VP-Senior Analyst at Moody's Ratings 

Host: Aaron Johnson, VP-Senior Research Writer at Moody's Ratings

Related research:

• Robust structures will mitigate heightened collateral risks in private credit CLOs
• Escalating private credit competition will increase risk and scrutiny

Basel 3.1 reforms will lead banks to apply high haircuts to unsustainably high property values and adjust mortgage risk weights to better differentiate between low-risk and high-risk loans.

Speakers: Alexander Zeidler, VP-Sr Credit Officer at Moody's Ratings; Guillaume Lucien-Baugas, VP-Senior Analyst at Moody's Ratings

Hosts: Aaron Johnson, VP-Senior Research Writer at Moody's Ratings; Danielle Reed, VP-Senior Research Writer at Moody's Ratings

Related Research:

• Basel 3.1 will reduce risk of boom and bust property cycles, boost private credit market
• Rising interest rates will weaken commercial property values and raise refinancing risk
• Explanatory comment – Haircuts smooth CRE values through the property market cycle

Recent cyberattacks on three mortgage servicers did not hurt rated residential mortgage-backed security performance, but show how disrupted operations can affect structured finance transactions.

Speakers: Peter McNally, VP-Sr Credit Officer at Moody's Ratings; Frank Wissman, VP-Senior Analyst at Moody's Ratings

Host: Aaron Johnson, VP-Senior Research Writer at Moody's Ratings

As solar panels become more common in Europe, the first solar loan asset-backed security becomes more likely. But while the asset class is new, many associated risks are familiar to ABS investors.

Speakers: Armin Krapf, VP-Sr Credit Officer at Moody's Investors Service; Pedro Sancholuz Ruda, VP-Sr Credit Officer at Moody's Investors Service

Host: Aaron Johnson, Vice President – Research at Moody’s Investors Service

Interest rate hikes in the wake of the pandemic have driven an increase in commercial real estate delinquencies, but a variety of factors help mitigate many refinancing and other performance risks.

Speakers: Alexander Zeidler, VP-Sr Credit Officer at Moody's Investors Service; Brian Snow, VP-Sr Credit Officer at Moody's Investors Service; Darrell Wheeler, VP-Sr Credit Officer at Moody's Investors Service

Host: Aaron Johnson, Vice President – Research at Moody’s Investors Service