[November 20, 2020]

KBRA Releases Research - 2021 Sector Outlook: Will RMBS Get Back on Track?

Kroll Bond Rating Agency (KBRA) releases its 2021 RMBS Outlook, which provides updates for full-year 2020 issuance volume, a review of key RMBS market and performance themes, as well as 2021 forecasts. The report also summarizes and discusses collateral performance trends, ratings activity, and research throughout 2020.

Key Takeaways

• Key themes of 2021 will continue to include pandemic-related economic impacts, the monitoring of credit performance, potential regulatory impacts stemming from a U.S. presidential administration change, as well as proposed policy changes related to the mortgage industry overall.
• 2020 Issuance Volume: $55 billion, down 10% compared to FY 2019 ($60.4 billion). Non-prime and credit risk transfer (CRT) sectors the worst hit, down more than 20% YoY.
• 2021 Issuance Expectation: We estimate 2021 issuance to increase 27% YoY to reach almost $69 billion across RMBS 2.0, with large growth contribution from the prime sector (+60%).

Click here to view the report.

Related Publications

• RMBS Credit Indices
• RMBS: KBRA Credit Brief: Mortgage Rates-How Low Can They Go?
• RMBS: Bridging the Minority Homeownership Gap: Credit Perspectives on Down Payment Assistance Programs
• RMBS: Hurricane Laura: Potential RMBS Exposure
• RMBS: RMBS Trend Watch: What Lies Ahead for the Remainder of 2020
• RMBS: Rating Actions on 1,340 Classes From 54 RMBS Transactions Report

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. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency (CRA) with the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe is registered with ESMA as a CRA. Kroll Bond Rating Agency Europe is located at 6-8 College Green, Dublin 2, Ireland.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201120005599/en/

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