NEW YORK, December 01, 2021--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) releases its outlook on the structured credit sector, which discusses structured credit issuance, themes for transactions and leveraged loans, and tailwinds and headwinds for issuance and performance next year.
The structured credit and CLO markets are heading into 2022 with several tailwinds: resilience in the face of the pandemic, surging demand for floating rate paper, strong underlying corporate credit performance and supply, and favorable conditions for refinancing activity and borrowing in general. However, other forces—including inflation, decelerating economic growth, supply chain disruptions, and fading government support—could present headwinds to the market’s momentum. Adding to these challenges is the uncertainty surrounding hundreds of billions of dollars of debt transitioning away from the decades-old LIBOR benchmark interest rate, and the impact of the new rate on the economics of new transactions.
In this report, KBRA highlights our 2022 issuance forecast for U.S. broadly syndicated loan (BSL) and middle market (MM) collateralized loan obligations (CLOs), European BSL CLOs, U.S. refi/reset/reissue (CLO-R) activity, and securitizations of bank and insurance trust preferred securities collateralized debt obligations (TruPS CDOs).
We also provide a list of recent KBRA reports within the structured credit sector, which includes pre-sale and new issue reports, surveillance, and research.
Click here to view the report
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.
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Sean Malone, CFA, Senior Director
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Gabriele Gramazio, Director
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Eric Hudson, Senior Managing Director
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Eric Thompson, Head of Global Structured Finance Ratings
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