KBRA Releases Research ? Structured Credit Trend Watch: Record Issuance and an Evolving Marketplace

BY Business Wire | ECONOMIC | 09/24/21 02:44 PM EDT

NEW YORK--(BUSINESS WIRE)-- Kroll Bond Rating Agency (KBRA) releases a report examining trends in the structured credit landscape, including issuance, spreads, notable structures, and document features. While issuance volumes for broadly syndicated loan (BSL) collateralized loan obligations (CLO) are poised to set historical records, KBRA has also observed several developing trends across the broader structured credit landscape. These include innovations in the U.S. middle market (MM) space, a renewed risk appetite in Europe, and a moderate decline in the issuance of trust preferred collateralized debt obligations (TruPS CDOs).

In addition to the sectors noted above, we discuss current developments surrounding the London Interbank Offered Rate (LIBOR) transition and provide a recap of KBRA?s rating and surveillance activity in 2021.

The report also includes the Structured Credit Publication Index, which contains links to recent KBRA reports within the structured credit sector.

Click here to view the report.

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About KBRA

KBRA is a full-service credit rating agency registered in the U.S., the EU, and the UK, and is designated to provide structured finance ratings in Canada. KBRA?s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.

Source: Kroll Bond Rating Agency

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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