Research Corner

Tracking market movements and macro signals that impact our members, and the performance of businesses and consumers that our market supports.

Our Market Funds
$12 Trillion…

Total Securitizations Outstanding in Trillions (Year-End 2020)

v2 Trillion Year end 1

Total 2022 YTD Private Market Securitization $745 Billion

Pie Chart v4

Publications

February 8, 2024

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.

December 14, 2023

This edition of Research Corner introduces the beta release of the SFA KnowledgeHub, a flexible data platform created to acquaint non-members with pertinent information and provide members with swift access to vital industry data sources. The Hub, currently organized into three key areas—How Securitization Helps Your State, Explore Data from the Home Mortgage Disclosure Act (HMDA), and Market Trends We Track—offers interactive, customizable reports that can be emailed or downloaded in CSV format.

November 30, 2023

In a recent analysis of 28 private credit loans and 15 broadly syndicated loans, Moody’s identified a noticeable correlation between the expanding size of private credit loans and the diminishing presence of financial maintenance covenants. Unlike the covenant-lite structures commonly associated with syndicated loans made to large companies, private credit loans made to middle-market companies have historically been characterized by robust covenant packages and maintenance requirements. In 2023, CLOs backed by private credit loans have contributed $22 billion to the $99 billion CLO new issue market. This marks an 85% increase compared to the previous year and stands in stark contrast to CLOs backed by broadly syndicated loans, which experienced a 31% decline during the same period.

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News

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SFA News

March 31, 2023

SFA’s Research Corner considers credit card ABS which, unlike other asset classes, are tied to the prime rate and are particularly sensitive to the Fed’s rate hikes. Credit card debt is nearing a record $1 trillion, up 15% year-over-year. Younger borrowers are mounting debt at nearly twice that rate and also pushing into delinquency at twice the rate for all age groups.

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SFA News

March 17, 2023

In Research Corner, we see the waiting game playing out in student loans and student loan ABS (SL ABS). Performance for post-2010 private credit SL ABS and private credit refinancing SL ABS has been “solid” thus far, according to the S&P Student Loan ABS newsletter. The rating agency expects adequate levels of credit enhancement on investment-grade SL ABS to “absorb deterioration and remain stable.”

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SFA News

September 16, 2022

Thirty-four corporate obligors whose leveraged loans are held by U.S. Corporate Loan Obligations (CLOs) were downgraded in August. This is the highest monthly number of CLO-held loan downgrades since July 2020, according to S&P’s SF Credit Brief.

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Contact

Elen Callahan

Elen Callahan

Head of Research & Education

Jessica Steele

Jessica Steele

Associate, Research

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