KBRA Releases Research – 2022 Sector Outlook—Structured Credit: Roaring Into 2022

NEW YORK–(BUSINESS WIRE)–#KBRA–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

Related Publications

• Structured Credit: LIBOR Transition—Basis Loaded?
• Structured Credit Trend Watch: Record Issuance and an Evolving Marketplace
• Loss Mitigation Obligations: CLO Workout and Flex
• 2022 RMBS Sector Outlook: Record Year on the Horizon
• 2022 Sector Outlook—CMBS: Full Steam Ahead

About KBRA

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.

Contacts

Sean Malone, CFA, Senior Director

+1 (646) 731-2436

sean.malone@kbra.com

Gabriele Gramazio, Director

+44 20 8148 1001

gabriele.gramazio@kbra.com

Eric Hudson, Senior Managing Director

+1 (646) 731-3320

eric.hudson@kbra.com

Eric Thompson, Head of Global Structured Finance Ratings

+1 (646) 731-2355

eric.thompson@kbra.com

Business Development Contact

Jason Lilien, Managing Director

+1 (646) 731-2442

jason.lilien@kbra.com