KBRA UK (KBRA) releases a report involving the results of its December 2022 European securitisation investor survey.
KBRA, for the second time in 2022, surveyed European structured finance investors to gauge their views and expectations regarding the market. The report aggregates and analyses the responses from KBRA's December survey, revealing a more positive picture than our previous survey from June. While many challenges remain for the European securitisation sector, as highlighted in our 2023 Sector Outlook, sentiment for the market has improved over the past six months. Sentiment is not overwhelmingly upbeat, but it does lean towards a more positive environment in the beginning of 2023 versus 2H 2022.
Key Takeaways
- Most investors surveyed expect a tightening in European securitisation market spreads over the next six months. This is especially true for investors of residential mortgage-backed securities (RMBS), asset-backed securities (ABS), and collateralised loan obligation (CLOs). Bank investors, independent asset managers, and pension funds are the strongest believers in future tightening, while hedge funds largely anticipate further spread widening.
- Issuance is expected to return in some sectors, with a marginal bias towards an ongoing steady supply of transactions versus a return to retention and a quiet market.
- From a collateral-performance perspective, the UK is overwhelmingly the area of greatest concern for investors surveyed.
Click here to view the report.
Related Publications
- 2023 European Structured Finance Sector Outlook: Stable Performance to Be Tested
- KBRA's European Securitisation Survey Reveals Market Concerns
- European Securitisation: Market Slows but Still Active in Q3 2022
- UK Consumer Crunch: Challenging Times Ahead
- Spain's Housing and Mortgage Markets Better Positioned for Challenges
- Rising Interest Rates to Increase Hedging Extension Costs and Refinance Risk
- CMBS LTV Covenant Breach Risk on the Rise
- European CLO Manager Style Comparisons: September 2022 Update
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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20221208005652/en/
Contacts:
Contact
Gordon Kerr, Head of European Research
+44 20 8148 1020
gordon.kerr@kbra.com
Media Contact
Adam Tempkin, Director of Communications
+1 (646) 731-1347
adam.tempkin@kbra.com
Business Development Contacts
Mauricio Noé, Co-Head of Europe
+44 20 8148 1010
mauricio.noe@kbra.com
Miten Amin, Managing Director
+44 20 8148 1002
miten.amin@kbra.com
