KBRA Releases Research - 2024 ABS Sector Outlook: Pushing Past the Headwinds
KBRA releases its 2024 ABS Sector Outlook, examining key trends from 2023 and providing forecasts for the new year.
The ABS sector has faced a challenging market environment over the past year, with rising yields, wider spreads, and softer credit fundamentals across most asset types. However, recent economic data shows moderating inflation and slowing job growth in the labor market, which suggests the Federal Reserve's restrictive monetary policy is working. Although plenty of downside risks will remain throughout next year, we believe it is likely that new issue volumes will climb, spreads will tighten, and credit fundamentals will weaken marginally across the majority of the ABS market.
Some key takeaways from the report include the following:
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.