Both consumer and corporate structured finance obligors will benefit from falling interest rates and moderate economic growth, although high costs will keep straining some borrowers’ finances. In this episode, we’ll discuss other factors contributing to the Moody’s Ratings outlook for the sector in the year ahead. Host: Aaron Johnson, Vice President – Research Writer Guest : Annabel Schaafsma, Managing Director, Global Structured Finance
Dec 17, 2024•11 min•Ep. 43
As regulators bolster copyright protections amid widening artificial intelligence use in the music industry, music royalty ABS issuers and other copyright holders will benefit from the protections. Speaker : Giyora Eiger, VP-Sr Credit Officer at Moody's Ratings Host : Aaron Johnson, VP-Senior Research Writer at Moody's Ratings Related Research : Music Royalty ABS and Music Companies – US: Protecting voices and copyrights from AI misuse will aid ABS and music companies...
Sep 26, 2024•13 min•Ep. 42
High rates and inflation will continue threatening consumers’ ability to pay their debts in some regions in the coming months, but solid job growth will temper the negative effect on performance. Speakers : Nick Monzillo, VP-Senior Analyst at Moody's Ratings; Gaby Trinkaus, Senior VP/Manager at Moody's Ratings; Gracie Zhou, VP-Senior Analyst at Moody's Ratings Host : Aaron Johnson, VP-Senior Research Writer at Moody's Ratings
Jul 25, 2024•22 min•Ep. 41
The use of artificial intelligence in collateral underwriting comes with both benefits and risks to structured finance transactions, while jurisdictions take different approaches to AI regulation. Speakers : Peter McNally, VP-Sr Credit Officer at Moody's Ratings; Johann Grieneisen, VP-Senior Analyst at Moody's Ratings Host : Aaron Johnson, VP-Senior Research Writer at Moody's Ratings Related Research : Artificial Intelligence - Structured Finance: AI used in asset origination brings benefits, ri...
Jun 27, 2024•12 min•Ep. 40
As the regulatory environment continues to evolve, US and European banks have sought regulatory capital relief by offloading the credit risk of loans they make via special types of transactions. Guests : Warren Kornfeld, Senior Vice President at Moody's Ratings; Nick Monzillo, VP-Senior Analyst at Moody's Ratings; Frank Cerveny, VP-Senior Research Analyst at Moody's Ratings Host : Aaron Johnson, VP-Senior Research Writer at Moody's Ratings Related reports : Auto ABS - US: Credit-linked notes inc...
May 31, 2024•18 min•Ep. 39
Should European non-bank direct lenders turn to collateralized loan obligation financing, transaction collateral will likely reflect the wide range of borrowers to which private credit lenders cater. Speakers : Sean Marion, MD-EMEA Structured Finance at Moody's Ratings; Shan Lai, VP-Senior Analyst at Moody's Ratings Host : Aaron Johnson, VP-Senior Research Writer at Moody's Ratings Related research: Robust structures will mitigate heightened collateral risks in private credit CLOs Escalating pri...
Apr 26, 2024•14 min•Ep. 38
Basel 3.1 reforms will lead banks to apply high haircuts to unsustainably high property values and adjust mortgage risk weights to better differentiate between low-risk and high-risk loans. Speakers : Alexander Zeidler, VP-Sr Credit Officer at Moody's Ratings; Guillaume Lucien-Baugas, VP-Senior Analyst at Moody's Ratings Hosts : Aaron Johnson, VP-Senior Research Writer at Moody's Ratings; Danielle Reed, VP-Senior Research Writer at Moody's Ratings Related Research : Basel 3.1 will reduce risk of...
Apr 10, 2024•14 min•Ep. 37
Recent cyberattacks on three mortgage servicers did not hurt rated residential mortgage-backed security performance, but show how disrupted operations can affect structured finance transactions. Speakers : Peter McNally, VP-Sr Credit Officer at Moody's Ratings; Frank Wissman, VP-Senior Analyst at Moody's Ratings Host : Aaron Johnson, VP-Senior Research Writer at Moody's Ratings
Mar 28, 2024•11 min•Ep. 36
As solar panels become more common in Europe, the first solar loan asset-backed security becomes more likely. But while the asset class is new, many associated risks are familiar to ABS investors. Speakers : Armin Krapf, VP-Sr Credit Officer at Moody's Investors Service; Pedro Sancholuz Ruda, VP-Sr Credit Officer at Moody's Investors Service Host : Aaron Johnson, Vice President – Research at Moody’s Investors Service
Feb 29, 2024•11 min•Ep. 35
Interest rate hikes in the wake of the pandemic have driven an increase in commercial real estate delinquencies, but a variety of factors help mitigate many refinancing and other performance risks. Speakers : Alexander Zeidler, VP-Sr Credit Officer at Moody's Investors Service; Brian Snow, VP-Sr Credit Officer at Moody's Investors Service; Darrell Wheeler, VP-Sr Credit Officer at Moody's Investors Service Host : Aaron Johnson, Vice President – Research at Moody’s Investors Service...
Jan 26, 2024•24 min•Ep. 34
High interest rates will weigh on collateral performance in 2024 as structured finance markets adjust to structural shifts, regulatory reforms and geopolitical polarization. Speaker : Annabel Schaafsma, Global Head of Structured Finance at Moody's Investors Service Host : Aaron Johnson, Vice President – Research at Moody’s Investors Service
Dec 14, 2023•13 min•Ep. 33
Home price growth has stalled in most major economies globally. However, despite rising wages, housing affordability is weakening after record or near-record house price appreciation in recent years. Speakers : Rodrigo Conde Puentes, VP-Senior Analyst; Darrell Wheeler, VP-Sr Credit Officer; Si Chen, Analyst Host : Aaron Johnson, Vice President – Research, Moody’s Investors Service
Oct 31, 2023•21 min•Ep. 32
Various negative macroeconomic trends loom larger for middle market companies than for larger corporates, but the impact on middle market collateralized loan obligations is limited. Host : Aaron Johnson, Vice President – Research, Moody’s Investors Service
Sep 29, 2023•7 min•Ep. 31
Asset-backed securities exposed to small and medium-sized enterprises remain among the transactions most vulnerable to continued slow economic growth around the globe. How has economic weakness eroded collateral performance thus far and what do we expect for the rest of 2023? Guests : Sandie Zhang, Analyst – Structured Finance, Moody’s Investors Service; Monica Curti, Vice President – Structured Finance, Moody’s Investors Service; Daniel Gan, Analyst – Structured Finance, Moody’s Investors Servi...
Aug 31, 2023•19 min•Ep. 30
Multifamily commercial real estate has performed well of late in both the US and Europe, but will that continue amid high rates and increased scrutiny on buildings energy efficiency? Guests: Darrell Wheeler, Head of CMBS Research – Structured Finance, Moody’s Investors Service; Brian Snow, Vice President – Structured Finance, Moody’s Investors Service. Host: Aaron Johnson, Vice President – Research, Moody’s Investors Service. To read more on this topic, visit Securitization Spotlight page on Moo...
Jul 28, 2023•20 min•Ep. 29
With Libor’s demise imminent, how prepared are US CLOs to move on from the long-time benchmark? Guest : Peter Hallenbeck, Vice President, Senior Officer Legal Review – Structured Finance Group, Moody’s Investors Service Host : Aaron Johnson, Vice President – Research, Moody’s Investors Service To read more on this topic, visit Securitization Spotlight page on Moodys.com (some content only available to registered users or subscribers). Related Research: Private Credit – Cross Region: Middle-marke...
Jun 30, 2023•12 min•Ep. 28
Moody’s analysts David Burger, Mark Wasden and Neal Epstein explain how differences in structure and asset risk give rise to divergent credit profiles among the three investment vehicles. Speakers: David Burger, VP – Senior Credit Officer, Moody’s Investors Service; Mark Wasden, Senior Vice President, Moody's Investors Service; Neal Epstein, VP – Senior Credit Officer, Moody's Investors Service Hosts: Aaron Johnson, VP – Senior Research Writer, Moody’s Investors Service; Danielle Reed, VP – Seni...
Jun 28, 2023•22 min•Ep. 27
As climate change intensifies, how are utility companies using securitization to recover costs related to unforeseen developments like major storms and other natural disasters? And how is the market for these transactions evolving? Guests: Inga Smolyar, Vice President – Structured Finance Group, Moody’s Investors Service, Tracy Rice, Vice President – Structured Finance Group, Moody’s Investors Service, Natividad Martel, Vice President – Public Project and Infrastructure Finance Group, and Matthe...
May 31, 2023•21 min•Ep. 26
Jerome Cheng and Tengfu Li discuss how China’s economic rebound will support residential mortgage-backed securities and a handful of Asia-Pacific banking systems with close ties to the country. Speakers: Tengfu Li, AVP – Analyst, Moody’s Investors Service; Jerome Cheng, Associate Managing Director, Moody’s Investors Service Hosts: Danielle Reed, VP – Senior Research Writer, Moody’s Investors Service; Aaron Johnson, VP – Senior Research Writer, Moody’s Investors Service Related content on Moodys....
May 10, 2023•11 min•Ep. 25
Structured finance transactions are exposed to recent banking stresses in the US and Europe at both the collateral and counterparty levels. But will that impact be material? And what kinds of protections do transaction structures provide? Guests: Edward Manchester, Senior Vice President – Structured Finance Group, Moody’s Investors Service, and Amy Tobey, Senior Vice President – Structured Finance Group, Moody’s Investors Service. Host: Aaron Johnson, Vice President – Research, Moody’s Investors...
Apr 27, 2023•10 min•Ep. 24
As borrowing costs continue to rise and consumers’ purchasing power wanes, borrowers’ ability to make debt payments is weakening. What makes auto ABS among the securitization sectors most vulnerable to this deterioration in consumers’ finances? And what does the sector’s ongoing transition to electric power mean for transactions we rate? Guests: Maxwell Price, Analyst – Structured Finance Group, Moody’s Investors Service; and Robin Liu, Vice President – Structured Finance Group, Moody’s Investor...
Mar 30, 2023•13 min•Ep. 23
European small and medium-sized enterprises, and in turn securitizations backed by their debt, remain among the most vulnerable borrowers as the COVID-19 pandemic has given way to Ukraine War-driven economic uncertainty over the past year. With the war still raging and economies weakening, where are some of the biggest risks in the sector? And what kind of mitigants do ABS structures provide? Guests: Monica Curti, Vice President – Structured Finance Group, Moody’s Investors Service. Host: Aaron ...
Feb 24, 2023•14 min•Ep. 22
Rising rates and a deteriorating macroeconomic environment will make it more difficult for commercial real estate borrowers to refinance, but some will have more difficulty than others. Guests: Darrell Wheeler, Vice President – Moody’s Investors Service Host: Aaron Johnson, Vice President – Research, Moody’s Investors Service To read more on this topic, visit these reports on Moodys.com (some content only available to registered users or subscribers). Higher interest rates will subdue post-pande...
Jan 30, 2023•18 min•Ep. 21
With the global economy on the verge of a downturn amid extraordinarily high levels of uncertainty, the performance of assets backing structured finance transactions will weaken in 2023. But erosion will not be distributed evenly across markets. Guests : Annabel Schaafsma, Managing Director – Global Structured Finance, Moody’s Investors Service Host : Aaron Johnson, Vice President – Research, Moody’s Investors Service To read more on this topic, visit Securitization Spotlight page on Moodys.com ...
Dec 15, 2022•19 min•Ep. 20
Interest rate hikes in many regions have slowed home price growth, but even where prices have started to decline, affordability remains strained. What are the implications for mortgage-backed securities, particularly for transactions backed by mortgages originated in the past year, when home prices were peaking? Guests: Rodrigo Conde Puentes, Vice President – Structured Finance Group, Moody’s Investors Service, Sonny Weng, Vice President – Structured Finance Group, Moody’s Investors Service, and...
Dec 01, 2022•21 min•Ep. 19
Collateralized loan obligation portfolios and structures are always evolving, changing along with the credit environment. But since the pandemic set in, how have US and European deals continued to converge, and in what ways have they gone in their own directions? Meanwhile, how has the CLO manager landscape changed in each region? Guests: Shan Lai, Vice President – Structured Finance Group, Moody’s Investors Service, and Ian Perrin, Associate Management Director – Structured Finance Group, Moody...
Oct 27, 2022•13 min•Ep. 18
The harmonization of covered bond laws across the EU will benefit bank issuers, transactions and investors alike. Meanwhile, with inflation heightening risks in many structured finance markets, covered bonds continue to benefit from the relatively strong credit quality of their bank issuers. How big of a deal is harmonization and what types of loans will it affect? Are there any holes in the new, unified framework? Guests: Alexander Zeidler, Vice President – Structured Finance Group, Moody’s Inv...
Sep 29, 2022•21 min•Ep. 17
The performance of auto-related asset-backed securities we rate in the US and Europe will normalize in the coming months as auto prices flatten out and macroeconomic factors such as inflation weigh on consumers. How do both used and new auto price movements affect ABS? Will supply disruptions persist into 2023? And how much will rising interest rates affect transactions backed by auto loans and leases? Guests: Karen Ramallo, Associate Managing Director – Structured Finance Group, Moody’s Investo...
Jul 29, 2022•14 min•Ep. 16
Description: With loan-level delinquencies on the decline, the performance of CMBS in both the US and Europe is healthy. But some sectors are drawing extra attention in the wake of the pandemic. How much of the retail sector’s recent struggles are attributable to the pandemic and how much are a continuation of the ongoing trend away from bricks and mortar? Which property types are best positioned as inflation continues to rise? Guests : Matt Halpern, Vice President – Structured Finance Group, Mo...
Jul 01, 2022•15 min•Ep. 15
Investors across markets are increasingly taking ESG factors into consideration. The structured finance world is no stranger to these efforts and their impact on transaction credit quality. To what extent have investor preferences and regulations driven changes to the structured finance market in recent years? And how is The Netherlands an example of how flooding risk factors into real estate collateral considerations? Guests: Antonio Tena, Vice President – Structured Finance Group, Moody’s Inve...
May 27, 2022•17 min•Ep. 14
