SFA Submits Letter to CFPB on Foreclosure Moratorium
In response to a request for public comment from the CFPB, on May 10, SFA submitted a letter raising concerns regarding the bureau’s Notice of Proposed Rulemaking on foreclosure moratorium.
SFA’s Weekly Research Corner Reports
Take a look at our Research Corner where we track the performance of consumer and business lending that our market finances and the economic impact of the structured finance industry.
SFA Submits Request to IRS for Extension of COVID-19 Revenue Procedures
SFA requests the IRS extend an existing safe harbor that would relieve issuers and holders of outstanding debt instruments from severe tax consequences that could arise as result of COVID-19.
SFA and our member companies are working diligently to ensure the functioning of our country’s capital markets, and the protection of the consumers and communities our members serve.
Publications
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SFA’s Research Corner is where we track the performance on the consumer and business lending that our market finances and the economic impact of the structured finance industry, including market movements and macro signals that impact our members.
SFA Research Corner: Driving Towards Decarbonization: Connecting Auto ABS to Climate Change – January 19, 2022
SFA Research Corner: Stronger Assets, Lower Household Debt and Improving Labor Market: The Trifecta of ABS Credit Performance – December 16, 2021
SFA Research Corner: A Good Year in Securitization Ratings; ESG-S Factors Continue to Impact – December 09, 2021
SFA Research Corner: Now You Cap It, Now You Don’t—FHFA Actions Added to Record Year for Non-agency RMBS– December 02, 2021
SFA Research Corner: Assessing Appraisal Waivers and AVMs – November 18, 2021
SFA Research Corner: Container Lease ABS – A Port in the Global Shipping Storm – October 27, 2021
SFA Research Corner: A Deluge of Deals in September Sets New Highwater Mark – October 21, 2021
SFA Research Corner: CLO Update—From Uncertainty to Thriving, But Mind the Zombies- September 22, 2021
SFA Research Corner: End of Unemployment Benefits Could Lead to Short-Term Up-Tick in Delinquencies and Credit Card Debt – September 15, 2021
SFA Research Corner: Household Balance Sheets and Labor Markets Robust Even as Relief Programs Roll Off – September 7, 2021
SFA Research Corner: Strength in Non-QM and SFR Supports Surge in Non-Agency RMBS – August 12, 2021
SFA Research Corner: Hertz’s New Lease on ABS – July 19, 2021
SFA Research Corner: The Road Back: What a Difference a Jab Makes – June 23, 2021
SFA Research Corner: Continued Jobs Improvement Supports Securitization – June 8, 2021
SFA Research Corner: Helping Lenders Fund America’s Small Businesses – May 24, 2021
SFA Research Corner: Lending Conditions, One Step Forward, and Jobs Data, Two Steps Back – May 13, 2021
SFA Research Corner: Confidence in CLOs Boosted by 2020 Resiliency and 2021 Economic Recovery – May 3, 2021
SFA Research Corner: Serving the Underserved – April 28, 2021
SFA Research Corner: Trends in Auto ABS – April 20, 2021
SFA Research Corner: Revolving Debt and Credit Card ABS – April 14, 2021
SFA Research Corner: A Tale of Two Mortgage Markets – April 7, 2021
SFA Research Corner: March Came in Like a Lion for LIBOR Transition – March 30, 2021
SFA Research Corner: After a Conscious Decoupling, Will There Be a Reconciliation? Unemployment and Credit Performance Post-COVID – March 16, 2021
SFA Research Corner: The Electric Vehicle Market Charges Up – March 9, 2021
SFA Research Corner: Calls for Consistent, Comparable Climate-Related ESG Disclosures – March 2, 2021
SFA Research Corner: Student Loan Forgiveness and ABS – February 23, 2021
SFA Research Corner: Lending Conditions Ease for Consumers, Not Businesses – February 17, 2021
SFA Research Corner: SFA Research Corner: An Executive Order Seeks to Lift Pall on ESG Cast by DOL Rule – February 9, 2021
SFA Research Corner: Households Expect To Spend More in 2021 – February 1, 2021
SFA Research Corner: Support for Households Continue – January 26, 2021
SFA Research Corner: Checking on Household Health After a Stressful Year – January 13, 2021
SFA Research Corner: Middle-Market CLOs Resilient in Early Days of Pandemic as Labor Market Point to Rough Days Ahead – December 7, 2020
SFA Research Corner: Time to Take Off the Training Wheels – November 23, 2020
SFA Research Corner: Tightening Standards Continue Amidst Firming but Uneven Demand – a Look at the October Senior Loan Officer Fed Survey – November 16, 2020
SFA Research Corner: Consumers May Find Themselves Between a Rock and Hard Place – November 10, 2020
SFA Research Corner: The Road Back – Positive Macro Trends Support Auto ABS – November 2, 2020
SFA Research Corner: Joblessness and Credit Scores Improve as Consumers Buckle Down – October 26, 2020
SFA Research Corner: Aircraft ABS Buffeted by COVID-19 Turbulence – October 13, 2020
SFA Research Corner: Macro Data Continues To Show a Slowing Recovery as Securitization Market Reports Strongest Month of Activity Since Onset of Pandemic – October 5, 2020
SFA Research Corner: Corporate Bankruptcies Hit Highest Levels in 9 Years – September 28, 2020
SFA Research Corner – September 22, 2020
SFA Research Corner – September 14, 2020
SFA Research Corner – September 8, 2020
SFA Research Corner – August 31, 2020
SFA Research Corner – August 3, 2020
SFA Research Corner – July 28, 2020
SFA Research Corner – July 20, 2020
SFA Research Corner – July 13, 2020
SFA Research Corner – June 30, 2020
SFA Research Corner – June 22, 2020
SFA Research Corner – June 15, 2020
SFA Research Corner – June 8, 2020
SFA Research Corner – June 1, 2020
SFA Research Corner – May 18, 2020
SFA Research Corner – May 8, 2020
SFA Research Corner – May 1, 2020
SFA Research Corner – April 23, 2020
SFA Research Corner – April 16, 2020
The outbreak of COVID-19 has resulted in supply and demand shocks never before known to the world economy. Social distancing and shelter in place directives arising from the COVID-19 outbreak have begun to weigh heavily on consumer demand as businesses, both large and small, close for extended periods of time. As the number of confirmed cases in the U.S. continues to rise, the full impact of this outbreak on the U.S. economy remains uncertain. Businesses and consumers will face increasing pressures during these challenging times. We encourage you to explore our members’ extensive coverage of COVID-19 and its impact on the securitization markets. Links may be found below.
Consumer ABS:
General
Fitch Publishes Consumer ABS Rating Criteria Exposure Draft – Fitch Ratings
Small Business ABS Credit Quality Hinges On Pandemic Duration And Stimulus Efficacy – S&P Global
10 U.S. Small Business ABS Deals on Watch Downgrade Due to COVID-19 – KBRA
U.S. Structured Finance Trend Watch: Navigating Troubled Waters – KBRA
Coronavirus: Impact of Federal Stimulus on Securitizations Backed by Consumer Receivables– KBRA
Coronavirus (COVID-19): Impact of Federal Stimulus on Securitizations Backed by Consumer Receivables – KBRA
Coronavirus Payment Holidays Could Delay Subordinated SF Interest – Fitch
Coronavirus Containment Actions Pose Material Risk to Global SF -Fitch
Coronavirus (COVID-19): Consumer ABS Braces for Disruptions – KBRA
Global Structured Finance Rating Methodologies and Coronavirus Disease (COVID-19) – DBRS
Coronavirus Could be Fatal for Retailers Facing Downgrades, Bankruptcy – S&P
Auto ABS
COVID-19-tied loan extensions will weaken deal cash flows – Moody’s
Auto ABS – US: Sector Update – Q1 2020: Loan extensions rise as pandemic takes hold – Moody’s
Coronavirus (COVID-19): Modifying Auto and Consumer Loan Delinquency Expectations – KBRA
US Car Rental Bankruptcies May Further Pressure Used Car Prices – Fitch
WEBINAR: COVID-19 AND THE U.S. AUTO LOAN ABS SECTOR – KBRA
Thirty-Three U.S. Subprime Auto ABS Ratings From 26 Transactions Placed On CreditWatch Negative – S&P Global
U.S. Auto Loan Tracker: Both Prime and Subprime Markets Show Effects Of COVID-19 For March 2020 – S&P Global
Auto Loan ABS Sector Outlook – Negative Amid Coronavirus – DBRS
Surge in loan extensions will slow note payments, signals rising borrower distress – Moody’s
60 U.S. Auto Loan and Auto Lease ABS Securities on Watch Due to COVID-19 Concerns – KBRA
Structured Finance Ratings: Fitch’s Coronavirus Response So Far (As of April 17) – Fitch
Coronavirus Pain for US Automakers Likely to Worsen in Near Future – S&P
Credit Card ABS
U.S. And Canadian Credit Card ABS Performance Risk Increases As Unemployment Supplements Wane – S&P
COVID-19 fallout will further weaken yields and payment rates from sharp April erosion – Moody’s
15 U.S. Credit Card ABS Securities on Watch Due to COVID-19 Concerns – KBRA
Coronavirus Fallout to Adversely Affect U.S. Credit Card ABS – Fitch Ratings
Coronavirus Impact More Pronounced for Retail Credit Card ABS – Fitch
Equipment ABS
Coronavirus shock heightens credit risk for transportation, some small ticket ABS – Moody’s
US Equipment ABS Asset Performance Negative on Coronavirus – Fitch
Personal Loan ABS:
Coronavirus poses record shock to obligors, risk is heightened for unsecured loan ABS – Moody’s
169 U.S. Unsecured Consumer ABS Securities on Watch Due to COVID-19 Concerns – KBRA
Rental Car ABS
Hertz Settlement/Plan Laid Out; Coronavirus Risks High for Rental Car ABS – Fitch Ratings
Rental Car ABS Outlook Revised to Negative On Coronavirus Impact– Fitch
Student Loan ABS
COVID-19-tied forbearance delays cash flow, heightens risk for short-dated bonds (FFELP) – Moody’s
U.S. Private Student Loan ABS Sector Outlook — Negative Due to Coronavirus – DBRS Morningstar
DBRS Morningstar Student Loan ABS Update — Q1 2020 Performance – DBRS
Effects Of COVID-19 On U.S. Student Loan ABS – S&P
U.S. Private Student Loan ABS Outlook Negative on Coronavirus Pressure – Fitch
Commercial ABS:
General
Strains on small and midsize businesses are credit negative for issuers across sectors -Moody’s
Aircraft ABS
Aircraft Lease ABS and Secured Aircraft Debt Sector Outlook—Negative Due to the Coronavirus – DBRS Morningstar
Coronavirus (COVID-19): Aviation ABS Exposure to Avianca’s Bankruptcy Filing – KBRA
As Coronavirus Disease (COVID-19) Weighs on Airlines, Lease Payment Deferrals Are Likely to Rise– DBRS
Whole Business Securitizations
US Whole Business Securitizations Under Stress from COVID-19 – S&P
Coronavirus (COVID-19): Implications for Whole Business Securitizations – KBRA
U.S. WB ABS: Nine Ratings on CreditWatch Negative Due to COVID-19 Stress – S&P (subscription required)
Small Business ABS
Coronavirus (COVID-19): Impact on Small Business ABS – KBRA
CMBS:
Coronavirus and Volatile Oil Prices Elevate Risk on Houston CMBS– DBRS Morningstar
Coronavirus (COVID-19): A Closer Look at State Multifamily Rent Legislation -KBRA
CMBS Conduit Exposure to Coronavirus Disease (COVID-19) Implications-DBRS Morningstar
Coronavirus (COVID-19): Stresses Weigh on CBL Properties–CMBS Exposure Update – KBRA
Expand or Contract? Ramifications of Coronavirus on the Office Market – DBRS Morningstar
Coronavirus (COVID-19): CMBS Loan Performance Trend Update – KBRA
The Next Falling Domino: Student Housing – DBRS
DBRS Morningstar Interactions with CMBS Servicers During COVID-19 Pandemic – DBRS
Extended Closures Come With Significant Challenges for Retail Loans in CMBS – DBRS Morningstar
US CMBS conduit/fusion loan delinquencies up in March; coronavirus fallout to fuel further rise – Moody’s
U.S. Lodging-Backed CMBS Bracing For The Impact Of COVID-19 – S&P
Few Near-Term U.S. CMBS Maturities but Extensions Expected Due to Coronavirus – Fitch
Impacts of Coronavirus: What Does the CMBS Data Tell Us? – Moody’s
RMBS:
Structured Finance Ratings: Fitch’s Coronavirus Response So Far – Fitch Ratings
COVID-19-spurred forbearance will continue to drive up collateral delinquencies – Moody’s
Non-QM RMBS And COVID-19: Locking Down States’ Exposure – S&P
KBRA Places 277 Classes Across 53 RMBS Transactions on Watch Downgrade – KBRA
Fitch Ratings Updates U.S. RMBS Diligence to Include Heightened Coronavirus Stresses – Fitch Ratings
KBRA Places 277 Classes Across 53 RMBS Transactions on Watch Downgrade – KBRA
Coronavirus-tied aid will support mortgage performance, bond effects vary by structure – Moody’s
Coronavirus Disease Implications for Government-Sponsored Enterprise Credit Risk Transfer Deals – DBRS
Coronavirus-tied collateral delinquencies will likely rise in the next few months – Moody’s
Coronavirus Disease (COVID-19) Fallout and the Credit Risk Exposure Mapping of U.S. RMBS Sectors – DBRS
International:
Chinese Auto ABS Shows Resilience Amid Pandemic; Headwinds Remain. – Fitch Ratings
Australian banks’ extension of coronavirus relief measures will support RMBS – Moody’s
COVID-19-Related Public Rating Actions On Nonfinancial Corporations And Affected European CLOs-S&P
Sector Update, Q1 2020 – Performance deteriorated amid coronavirus disruptions (Asia Pacific) – Moody’s
Widespread but differing payment moratorium programs will lead to varying default roll rates – Moody’s
Coronavirus Pandemic Pressures Australian ABS Performance – Fitch Ratings
Impact of COVID-19 on Canadian Credit Card ABS – DBRS Morningstar
European Structured Finance COVID-19 Credit Risk Exposure Roadmap – DBRS Morningstar
COVID-19-Related Public Rating Actions On Nonfinancial Corporations And Affected European CLOs – S&P
Japanese Delinquent loan repurchases will moderate defaults amid coronavirus disruptions – Moody’s
Chinese Sector update, Q1 2020 – Delinquencies increased on coronavirus disruptions – Moody’s
Coronavirus Crisis to Test Latin American Securitization Structures – Fitch Rating’s
The outbreak of COVID-19 has resulted in supply and demand shocks never before known to the world economy. CLOs with meaningful exposure to impacted sectors will be most vulnerable to the COVID-19 outbreak. SFA strives to support the real economy in times of both crisis and growth by safely enabling greater credit access to industry, consumers, and investors. We encourage you to explore our members’ extensive coverage of COVID-19 and its impact on the securitization markets. Links may be found below.
SFA Research: Triple-A CLOs Weather COVID-Induced Credit Storm
DBRS Morningstar
Credit Estimates and Assessing Borrower Default Probabilities in CLOs
CLO Risk Exposure to the Coronavirus Disease (COVID-19)
Impact of Coronavirus on Canadian Airport Authorities
Fitch Ratings
Oil Shock Compounds Sovereign Credit Risks from Coronavirus
Coronavirus Pressure Builds for NFP Hospitals, Health Systems
Fitch Stressing CLOs for Coronavirus Vulnerabilities
KBRA
WEBINAR: COVID-19 IMPACT ON CLOs AND CORPORATE CREDIT
Coronavirus (COVID-19): U.S. BSL CLO Sector Exposure Map: May 2020
Corporates: Coronavirus (COVID-19): KBRA’s Corporate Credit Playbook
Aviation: Coronavirus (COVID-19) and its Effect on the Commercial Aviation Industry Comment
Mayer Brown
Moody’s
CLO credit quality continues to weaken as underlying corporate credit conditions begin to stabilize
CLOs – US: Sector Update – Q1 2020: CLO metrics weakened amid robust loan market on eve of pandemic
CLOs – Global: CLO tranches riskier on coronavirus economic fallout, with rating ramifications
Coronavirus will hurt credit quality of CLOs to varying degrees, structures will soften the blow
CLOs – US: Coronavirus Shock Will Most Affect CLOs With Weak Issuers In Vulnerable Sectors
Airlines Credit Quality Weakens as Coronavirus Causes Unprecedented Stress
Intensifying efforts to develop coronavirus treatments have positive ESG implications
S&P Global
COVID-19-Related Public Rating Actions On Nonfinancial Corporations And Affected European CLOs
Under Stress: Assessing CLO Manager Performance During COVID-19
CLO Spotlight: U.S. CLO Exposure To Negative Corporate Rating Actions
How COVID-19 Changed The European CLO Market In 60 Days
CLO Spotlight: U.S. CLO Exposure To Negative Corporate Rating Actions
Scenario Analysis: How Credit Distress Due To COVID-19 Could Affect U.S. CLO Ratings
European Corporate Securitizations: Assessing The Credit Effects Of COVID-19
European CLOs: Assessing The Credit Effects Of COVID-19
CLO Spotlight: Coronavirus Will Put U.S. CLO Diversity And Managers To The Test
Italian Power, Gas Demand Slump Illustrates How Coronavirus has Crippled Industry
Going into the COVID-19 crisis, our households and businesses were supported by strong wages, low unemployment rates and low interest rates. While this will provide some support to our economy, the COVID-19 pandemic has resulted in supply and demand shocks never before known to the world economy. As governments discuss and implement exit strategies, the full impact of this outbreak on the U.S. economy still remains uncertain. SFA strives to support the real economy in times of both crisis and growth by safely enabling greater credit access to industry, consumers, and investors. We encourage you to explore our members’ extensive coverage of COVID-19 and its impact on the securitization markets. Links may be found below.
SFA Research: Triple-A CLOs Weather COVID-Induced Credit Storm
COVID-19 United States Cases by County, April 2020
Source: Johns Hopkins University of Medicine Coronavirus Resource Center
DBRS Morningstar
COVID-19 Related Global Structured Finance Rating Actions
Replay Webinar: Impact and Implications of Coronavirus on European Credits
COVID-19 Impact Mitigated by Spain’s Recent Economic Momentum
Fitch Ratings
Coronavirus Accelerates Secular Shifts in Structured Finance
Most Structured Finance Ratings Affirmed, Negative Actions Up
Structured Finance’s Forbearance Challenges Go Beyond Liquidity
Coronavirus Crisis Is Crushing Global GDP Growth
Sector and Rating Outlook for U.S. Banks Revised to Negative
KBRA
Coronavirus (COVID-19): Can Credit Hold Ground While the U.S. Is ‘Spiraling Out of Control?’
Coronavirus (COVID-19): U.S. Banks Stable Despite Uncertainties
Moody’s
Payment moratoriums disrupt transaction cash flow while helping avoid borrower defaults
Shifts in credit from coronavirus shocks weaken global securitizations
Global Economy Continues to Slide as Coronavirus Outbreak Worsens
S&P Global
COVID-19 Is Testing The Resilience Of Global Structured Finance
Economic Research: COVID-19 Macroeconomic Update: The Global Recession Is Here And Now
COVID-19 Credit Update: The Sudden Economic Stop Will Bring Intense Credit Pressure
Fed Facilities/Programs Summary
SFA has put together a summary table of all the facilities and programs announced by the Fed to-date in response to the COVID-19 crisis.
Read the summary table here.
TALF 2008 vs TALF 2020
SFA has put together a matrix comparing the 2008 TALF program criteria, as well as the asset and loan criteria, to that of 2020 TALF.
Read more here.
Main St. Lending Programs Borrower/Participant Criteria
SFA has put together a summary of the borrower/participant criteria for all of the Main Street Lending Programs.
Read more here.
TALF 2020 Deliverables Timeline
A quick reference guide to the required deliverables and related timing associated with TALF borrowing, issuers, sponsors and TALF Agents requirements can be found here. (Source: Mayer Brown)
Guide to the 2020 TALF Program
A guide to the most important features of the 2020 TALF program including eligibility requirements, loan terms, issuer/sponsor requirements, TALF Agent considerations, and a detailed TALF borrowing timeline may be found here. (Source: Morgan Lewis)
Federal Statutory Consumer Relief under the CARES Act
A chart summarizing key provisions of the CARES Act can be found here. (Source: Mayer Brown)