Moody's Talks - Securitization Spotlight

Madhavi Bokil of our Credit Strategy and Research group joins host Aaron Johnson to lay out our inflation and interest rate forecasts. And then, Peter McNally, Frank Cerveny and Marie Lam of our Structured Finance group discuss the impact of inflation and rising interest rates on structured finance transactions around globe

US: Collateral, structures determine extent to which rising rates will weaken transactions

Asia: Interest rate shifts will produce uneven credit outcomes

Europe: Vulnerability to inflation varies across portfolios, overall impact limited

Antonio Tena of our Structured Finance group and Atsi Sheth from our Credit Strategy and Research team join host Aaron Johnson to discuss the impact of the Russian invasion of Ukraine on European structured finance. And then Yehudah Forster, an attorney in our Structured Finance group, talks about the impact of a recent court ruling on US consumer debt-backed securitizations.

Related content on Moodys.com (some content only available to registered users or subscribers): 

• Structured Finance – Europe: Magnitude of negative impact of Russian invasion will vary across asset classes
• Credit Conditions – Global: Russia-Ukraine conflict adds new hazards to global credit and exacerbates existing risks
• Consumer ABS and RMBS – US: CFPB’s step forward in trust suit spurs risks across consumer securitizations

Lana Deharveng and Deryk Meherik of our Structured Finance group join host Aaron Johnson to discuss the impact of US collateralized loan obligations finding new domiciles, both those backed by corporate debt and those backed by commercial real estate debt.

Related content on Moodys.com (some content only available to registered users or subscribers): 

• CLOs and CRE CLOs – US - SPV shift from Cayman Islands after EU adds it to AML blacklist will be credit neutral
• Cross-Sector - Corporate CLOs, Conduit CMBS and CRE CLOs Share Exposure to Corporates, but Differ in Collateral and Structure

Corporate asset-backed securities (ABS), some of which were hit particularly hard by the pandemic, are now benefiting from the rapid economic rebound in the US. Growth in travel demand, particularly among consumers, will benefit several asset classes, including aircraft lease ABS. Meanwhile, persistently high used car prices will continue to boost rental car ABS credit quality and performance.

Related content on Moodys.com (some content only available to registered users or subscribers): 

• Corporate ABS - US - 2022 Outlook

In this episode, Ed Manchester of our Covered Bond team and Jim Ahern, the head of our Structured Finance group, join host Aaron Johnson to discuss our outlooks for covered bonds and structured finance in general for 2022.

Related content on Moodys.com (some content only available to registered users or subscribers): 

• Structured Finance – Global Strong asset performance will continue despite COVID-19 uncertainty
• Covered Bonds – Global 2022 Outlook - Stable issuers, strong assets and new rules will support credit quality 
• Structured Finance – Global: Approaching Libor transition milestones bring credit considerations into focus
• Structured Finance – Global Climate exposure, societal trends lead ESG credit risks for transactions

In this month’s episode, Sam Spackman and Lana Deharveng of our Structured Finance team in NY join host Aaron Johnson to discuss the recent global CLO issuance boom and changes to deal documentation.

Related content on Moodys.com (some content only available to registered users or subscribers): 

• CLOs – Global: H2 2021 Manager Trends: Portfolio Metrics and Rated Volume
• CLO – Global: Record issuance volumes bring lower coupons and modifications to credit features for outstanding deals

In this month’s episode , Alena Chen of our Structured Finance team in Sydney, and Gracie Zhou of our Structured Finance team in Shanghai, join hosts Aaron Johnson and George Liondis to discuss the effect of COVID-19 on the performance of securitizations.

Related content:

• Structured Finance – China: Sector Update Q3 2021 - Performance stable as economy grows - An update of issuance and performance trends in the sector.
• Structured Finance – Asia-Pacific: Coronavirus resurgence poses asset performance risks - Of the Asia-Pacific countries where coronavirus cases have surged, asset performance risks for structured finance deals are highest in India and much lower in Australia, Japan and Korea
   

Inside this episode:

In this month’s episode, Nick Monzillo of our US Structured Finance team, and Tony Parry of our European Structured Finance team join hosts Aaron Johnson and Ruth Mantell to discuss the stronger-than-expected performance of asset-backed securities during the coronavirus pandemic.

Related content:

• Consumer ABS – US Rising employment will help sustain solid collateral performance The strengthening employment picture and broadly strong economic recovery are positive for US consumer ABS, speeding the pace at which incomes can take over from government aid.
• RMBS and ABS – EMEA Collateral outperforming previous expectations as economies improve  As collateral has outperformed our initial expectations, we have revised most of our collateral forecasts to stable for the next 12-18 months.

In this month’s episode, Jody Shenn of the Structured Finance team joins hosts Aaron Johnson and Ruth Mantell to discuss hot topics in the market. Then, Brian Snow from the Commercial Mortgage-Backed Securities (CMBS) team talks about the effects of New York’s new emissions law on CMBS.​​​

Inside this episode:

• Jody Shenn of the Structured Finance team discusses hot topics in the market (begins at 1:19 mins)
• Brian Snow from the Commercial Mortgage-Backed Securities (CMBS) team will talk about the effects of New York’s a new emissions law on CMBS (begins at 8:40 mins)

Related content:

• Structured Finance – Global: Heard from the Market: Investors and issuers see improving credit - Some key takeaways from our recent calls with structured finance market investors, researchers and other market participants.
• CMBS — US: Groundbreaking NYC climate law spurs minor credit risk for CRE loans - As emissions limits in NYC phase in over the coming decade, noncompliant properties will incur fines, but such costs will spur material credit risk for only a handful of US CMBS.
   

In this month’s episode, Ifigenia Palimeri of our London Structured Finance team joins hosts Aaron Johnson and Xhensila Pisha to discuss the extent to which structured finance backs lending around the globe. And then, Chaitali Bharucha, from our New York Structured Finance team, and Monica Curti, from our Milan Structured Finance Team, will talk about the risks facing SME ABS as pandemic-driven support measures expire.

Related content:

• Structured finance contributes materially to the funding of the global economy
• SME ABS – Global Performance will weaken in some regions as support measures expire
• May Credit Outlook