COVID-19: Supporting Consumers & Businesses

The COVID-19 pandemic will have far reaching impacts on the global economy – supporting consumers and businesses during these times is our priority.

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

March 30, 2020

The replay of SFA’s webinar analyzing the recent regulatory and legislative developments in response to COVID-19 and the overall impact to our industry is now available.

March 25, 2020

In response to the economic dislocation brought on by the coronavirus pandemic, the Fed dusted off another powerful crisis-era tool. On March 23, the Fed established the Term Asset-Backed Securities Loan Liquidity Facility (TALF) to support the flow of credit to consumers and businesses.

March 24, 2020

COVID-19, social distancing, a declaration of a national emergency, and an oil price war all arrived in the U.S. in March. SFA takes a look at the potential impact of recent events on the CLO market.

March 20, 2020

Aircraft ABS are currently insulated from coronavirus-related disruption in global travel. Still, a prolonged slowdown in global air traffic would negatively impact aircraft ABS structures.

February 19, 2020

The ability of infectious diseases such as coronavirus and SARS to send shock waves through the global economy has become painfully apparent. Given China’s expanded role in the global economy, the impact of coronavirus is expected to be far-reaching.

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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

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 DisruptionsKBRA

Heat Map: Bonds Most Vulnerable to Coronavirus are in CLO, CMBS, Floorplan ABS and Rental Car ABS SectorsMoody’s

Global Structured Finance Rating Methodologies and Coronavirus Disease (COVID-19) – DBRS

Coronavirus Could be Fatal for Retailers Facing Downgrades, Bankruptcy – S&P

 

Auto ABS

Ford Motor Co. And Subsidiary Ratings Lowered To ‘BB+’ And Placed On CW Negative Due To Weaker Metrics, Pandemic Risk – S&P

Coronavirus Pain for US Automakers Likely to Worsen in Near Future – S&P

 

Rental Car ABS

Rental Car ABS Performance Expected to Remain Stable in the Near Term Despite Coronavirus Disease (COVID-19) ConcernsDBRS

 

Commercial ABS:

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

U.S. Lodging-Backed CMBS Bracing For The Impact Of COVID-19S&P

Few Near-Term U.S. CMBS Maturities but Extensions Expected Due to Coronavirus – Fitch

US Conduit Hotel Loans are more Vulnerable than their Single Borrower Counterparts as the Coronavirus Spreads – DBRS

Impacts of Coronavirus: What Does the CMBS Data Tell Us? – Moody’s

 

Aircraft ABS

77 Ratings On 32 Aircraft And Aircraft Engine ABS Deals Placed on Watch Negative Over Reduced Travel Due to Coronavirus – S&P

 

International

Credit FAQ: What Do The First Performance Reports Reveal About COVID-19’s Effects On China Auto ABS And RMBS?S&P

Coronavirus to Pressure China’s Near-Term Auto-ABS Performance – Fitch

How COVID-19 Outbreak Affects Rating Assumptions for China ABS and RMBS – S&P

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.

 

DBRS Morningstar

DBRS Morningstar Updates Oil and Natural Gas Price Assumptions for Corporate Credit Ratings in Light of Higher Oil Price Volatility Tied to the Coronavirus Outbreak

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

Corporates: Coronavirus (COVID-19): KBRA’s Corporate Credit Playbook

Aviation: Coronavirus (COVID-19) and its Effect on the Commercial Aviation Industry Comment

 

Moody’s

CLOs – EMEA: Small Amount Of Near-Term Maturities Will Soften Blow To CLOs From Industries Most Vulnerable To Coronavirus Fallout

Airlines Credit Quality Weakens as Coronavirus Causes Unprecedented Stress

Oil & Gas – Cross Region: Low Oil Prices Persisting For Longer Would Imply Additional Risk For Producers

Intensifying efforts to develop coronavirus treatments have positive ESG implications

 

S&P Global

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 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. And, the cracks have started to appear. For the week ending March 14, initial jobless claims rose to 281,000 a level last seen in September 2017. The Department of Labor attributes the increase to impacts from the COVID-19 virus. A number of states specifically cited COVID-19 related layoffs. 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.

Source: Department of Labor

 

DBRS Morningstar

Replay Webinar: Impact and Implications of Coronavirus on European Credits

COVID-19 Impact Mitigated by Spain’s Recent Economic Momentum

 

Fitch Ratings

Coronavirus Crisis Is Crushing Global GDP Growth

Sector and Rating Outlook for U.S. Banks Revised to Negative

 

KBRA

Coronavirus (COVID-19): U.S. Banks Stable Despite Uncertainties

 

Moody’s

Global Macro Outlook 2020-21 (March 25, 2020 Update) : The Coronavirus Will Cause Unprecedented Shock To The Global Economy

Global Economy Continues to Slide as Coronavirus Outbreak Worsens

Credit Outlook: 19 March 2020

Asia-Pacific Heat Map: Coronavirus Fallout Vulnerability is High in India, Low in Japan, Moderate Elsewhere

 

S&P Global

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

Tracking the Spread and Economic Impact of the Coronavirus

Fed Term Sheets 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.

News

SFA News

March 30, 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.

Industry News

March 27, 2020

The House of Representatives passed the $2 trillion “Phase III” economic stimulus legislation by voice vote.

Industry News

March 27, 2020

This article originally appeared in American Banker here. By Sam Taussig America’s 30 million small businesses are facing an unprecedented challenge as COVID-19 requires people to stay at home, and business owners to shut down to prevent the spread of the virus. Many Main Street businesses — upon which the economy relies on for commerce, employment, and…

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Contact

Jen Earyes

Head of Policy

Elen Callahan

Managing Director, Head of Research

Leslie Sack

Leslie Sack

Managing Director, Head of Government Relations