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TMCNet:  KBRA Releases its ABS 2019 Outlook: Cautiously Optimistic

[December 05, 2018]

KBRA Releases its ABS 2019 Outlook: Cautiously Optimistic

Kroll Bond Rating Agency (KBRA) releases its 2019 ABS (News - Alert) Outlook. The report makes the following key points:

  • Despite the recent sell-off in risk assets, year-to-date (YTD) ABS total returns stand at +0.98%, outperforming all other parts of the fixed income markets and highlighting the resiliency of the sector.
  • As we turn the calendar to 2019, we believe ABS credit fundamentals will remain strong in the year ahead.
  • The sell-off in risk assets has pushed ABS spreads to their widest point since early 2017, but we anticipate some room for tightening from present levels as current fundamentals should justify spreads at or near multiyear tights.
  • We forecast $249 billion of ABS supply in 2019, essentially flat to the post-crisis record of $245 billion expected to price by the end of 2018.

To access the reports, click here.

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About KBRA and KBRA Europe

KBRA is a full service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus, is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.

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