Read the latest articles and press releases about securitization and structured finance.

SFA News

SFA’s Research Corner: U.S. Credit Card ABS Tacking Into Headwinds Stays the Course for Now

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.

SFA News

SFA’s Research Corner

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.”

SFA News

SFA Research Corner: Loan Downgrades: The Canary in the CLO Coal Mine?

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.

SFA News

Mind the Gap – Alternative Data, RMBS to Help Address Wealth Inequality

New in @SCI_Newsfeed, our Head of Research Elen Callahan discusses how securitization can be a useful tool in addressing the growing wealth inequality gap.

SFA News

Searching for Standardization: Connecting RMBS to Social Capital

SFA’s latest Research Corner piece examines current use of existing ESG standards within RMBS, at both the corporate level as well as at the structured finance level. The report notes that SFA members Fannie Mae and Freddie Mac currently provide corporate level disclosure in line with SASB disclosures.

SFA News

SFA Research Corner: Driving Towards Decarbonization: Connecting Auto ABS to Climate Change

Green auto ABS deals represented $3.5 billion of the $29 billion issuer-designated ESG securitizations in 2021. Proceeds from these deals financed the purchase of green vehicles at Tesla and Toyota, the inaugural issuers of green auto ABS deals, by financing low- or zero-GHG-emissions vehicles.

SFA News

SFA Research Corner: Stronger Assets, Lower Household Debt and Improving Labor Market – The Trifecta of ABS Credit Performance

The Federal Reserve’s Z.1 data report, released on December 9, showed household net worth rose to $145 trillion and now stands 54% above its level five years ago.

SFA News

Research Corner: A Good Year in Securitization Ratings; ESG-S Factors Continue to Impact

Credit ratings activity has been overwhelmingly positive for the U.S. securitization market as upgrades have easily exceeded downgrades, in 2021, according to Moody’s Investors Service.

Industry News

SFA Research Corner: Now You Cap It, Now You Don’t—FHFA Actions Added to Record Year for Non-agency RMBS

Non-agency RMBS is on track to surpass $200 billion, a record for the sector. Of that total, $17 billion, or 9% of the non-agency RMBS market is backed by agency-eligible investor mortgages, according to Deutsche Bank Securitization Research.

SFA News

SFA Research Corner: Assessing Appraisal Waivers and AVMs

On October 18 FHFA Acting Director Sandra L. Thompson announced that the temporary use of desktop appraisals, adopted during the Covid-19 crisis, would become a permanent option. The FHFA is also considering the risks and benefits of the increased use of appraisal waivers, up more than 6.9 times the average level in 2018, as it continues to modernize the appraisal process.

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