KBRA Releases Its Q4 2018 U.S. ABS Outlook

Kroll Bond Rating Agency (KBRA) releases its Q4 2018 U.S. ABS Outlook: Fair Winds and Following Seas. The report looks back at credit fundamentals, new issue supply, and pricing trends in the ABS market in Q3 and provides an outlook for the rest of the year. The main takeaways from the report are:

• U.S. ABS returns moved further into positive territory in Q3, as ABS spreads retraced most of the widening experienced in the latter part of Q1 and beginning of Q2.
• Solid economic momentum and tight labor markets, highlighted by jobless claims hitting their lowest level in nearly 50 years last week, should continue to support ABS fundamentals through Q4 and well into 2019.
• The combination of a strong U.S. economy and tighter underwriting standards has led to stable or improving collateral performance within the consumer ABS sectors in which KBRA is most active, notably auto loans and unsecured consumer loans.
• Barring increased volatility and a sell-off in risk assets in Q4, ABS supply should reach a new post-crisis high, landing around $245bn in 2018.

To view the report, please 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20180921005059/en/