SFA Research Corner: Sparked by Market Optimism Amidst FOMC Caution, January Sees Record-breaking Issuance
article by SFA
In January, the private structured finance market surged with issuance of non-agency RMBS, CMBS, ABS, and CLO reaching $62 billion, making it the second most active January in the last decade. Despite the Fed’s cautious stance on interest rate cuts, growing optimism for a soft landing and potential rate cuts in 2024 have spurred market activity, leading to increased issuance and tighter credit risk spreads.