KBRA UK Releases Research – European KBRA Securitization Investigation Reveals Market Worries

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LONDON–(BUSINESS WIRE)–KBRA UK (KBRA) releases a report containing the results of its recent survey of European securitization investors. We surveyed 35 investors across a wide range of asset classes to gauge their views and expectations for the market. The report aggregates and analyzes the responses, revealing a widely worrying picture that the European securitization market potentially has a further price correction in store as it adjusts to inflationary pressures and geopolitical upheaval. However, a large portion of investors also believe that the market will eventually rebound.

Key points to remember:

  • Most investors surveyed expect a continued widening of the bias in European securitization markets. This is especially true for investors in commercial mortgage-backed securities (CMBS) and non-performing loans (NPL).

  • Issuance is expected to remain subdued, with most investors anticipating either a complete dry-up or a return to the post-global financial crisis (GFC) trend of retained and mostly prime collateral issuance.

  • The region of greatest concern for credit performance is the UK, followed by Italy, Spain, Germany and Ireland. A minority does not expect a deterioration in regional performance.

Click on here to view the report.

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KBRA is a full-service credit rating agency registered in the US, EU and UK, and is appointed to provide structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in several jurisdictions.

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