S&P Global Ratings’ structured finance podcast and the credit events of your day. Tune in as your hosts Jim Manzi and Tom Schopflocher explore hot topics across the structured finance and global markets.
info_outline The Stability Of U.S. Timeshare ABS Performance During The Pandemic 12/02/2021
The Stability Of U.S. Timeshare ABS Performance During The Pandemic Director Jay Srivats joins our host Tom Schopflocher this week to give an update on the U.S. timeshare securitization sector. We discuss the consolidation trends in the sector this year and their impact on issuance volume, the adjustments to our base-case default assumptions in our rating analysis in response to the pandemic, and the sector's overall stable ratings performance despite pandemic-related increases in deferrals and delinquencies.
info_outline An Overview Of The 2021 German, Swedish, And Danish Covered Bond Markets 11/23/2021
An Overview Of The 2021 German, Swedish, And Danish Covered Bond Markets Sector Lead Casper Andersen and analyst Natalie Swiderek join us this week to give an overview of the 2021 German, Swedish, and Danish covered bond markets, the three largest in Europe. We explore some of the differences between the regional markets and deep dive into the current trends in each market.
info_outline Possible LIBOR Replacement Scenarios And Their Effect On U.K. RMBS Ratings 11/17/2021
Possible LIBOR Replacement Scenarios And Their Effect On U.K. RMBS Ratings Credit analyst Irina Penkina joins us to discuss the possible impact LIBOR replacement could have on our U.K. RMBS ratings. We deep dive into different types of scenario analysis we developed to look at the patterns in the upcoming LIBOR transition and the resulting amended terms that could trigger a negative rating action on U.K. RMBS transactions, and more.
info_outline The Impact Of An Overvalued U.S. Housing Market On RMBS 11/12/2021
The Impact Of An Overvalued U.S. Housing Market On RMBS RMBS Sector Lead Jeremy Schneider joins us this week to discuss how U.S. home prices have made significant gains recently, leading to a shift in the U.S. housing market's to being overvalued. We further discuss how the overvaluation has led us to update the home value assessments we use when evaluating mortgage pools backing certain RMBS.
info_outline Current State Of Latin America Structured Finance 09/30/2021
Current State Of Latin America Structured Finance We're joined by Jose Coballasi and Antonio Zellek to discuss the current state of Structured Finance in Latin America. We touch on Latin America's overall ongoing recovery from the COVID-19 pandemic; the most relevant asset classes in Brazil, Argentina, and Mexico; ratings performance; and our forward-looking views on issuance in the region. We also detail Fintech's increasing role in the Latin American market.
info_outline Structured Finance Vs. Cyber Risk 09/23/2021
Structured Finance Vs. Cyber Risk We're joined by Matt Mitchell to discuss how Structured Finance securitizations prepare against cyber risks. We discuss how a securitization could be vulnerable to a cyberattack, the structural features that are available to mitigate and manage the cyberattack, how we account for cyber risk in our rating analysis, and how our ratings could be affected
info_outline Is Commercial Real Estate In Covered Bonds Worth The Risk? 07/29/2021
Is Commercial Real Estate In Covered Bonds Worth The Risk? This time, Casper Anderson joins us to discuss commercial real estate (CRE) in covered bonds. Is CRE in covered bonds worth the risk? We do a deep dive into that question by looking at the divergence of different CRE asset performances due to the pandemic, their exposures in different jurisdictions, the outlooks for CRE in Europe, and more.
info_outline Directive Issued To Harmonize EU Covered Bonds 07/22/2021
Directive Issued To Harmonize EU Covered Bonds Our host Tom Schopflocher is joined by analyst Casper Anderson to discuss covered bonds; this time it's the EU directive, which is now on its way to becoming law in all EU countries. The EU directive is the first real attempt at establishing a pan-European standard for covered bonds (as well as an attempt at strengthening the EU capitals market union). We discuss how the law seeks to establish that standard across the EU, some of the hold ups some countries are having in trying to enact this law, as well as some of the important legal differences that still exist between jurisdictions.
info_outline How Structured Finance Sectors Are Exposed To ESG Credit Factors 05/27/2021
How Structured Finance Sectors Are Exposed To ESG Credit Factors Environmental, social, and governance (ESG) has become even more prevalent since our last episode on the subject on Oct. 17, 2019. Kate Scanlin and Matt Mitchell join us this time to discuss our recently introduced ESG industry report cards, which help explain the influence ESG credit factors have on our credit rating analysis for specific Structured Finance sectors.
info_outline First-Quarter European RMBS Market Update 05/20/2021
First-Quarter European RMBS Market Update Host Tom Schopflocher speaks with credit analyst Alastair Bigley on key developments in the European RMBS market for first-quarter 2021. Performance has remained stable overall due to government support, with some deviation by country. Prepayments had started to increase again at the end of last year, but may slow as more borrowers move to fixed-rate products.
info_outline How The Southern European Nonperforming Loan Market Is Performing 04/15/2021
How The Southern European Nonperforming Loan Market Is Performing Although nonperforming loans (NPLs) are toxic, there is a market for securitizing NPLs. We're joined by analyst Fabio Alderotti this week to discuss the trends we are seeing in the southern European NPL market, and what we expect to see from that market in the future. We also deep dive into the different factors we consider in our rating analysis of NPL securitizations.
info_outline The Impact Of The FCA's Official LIBOR Cessation Dates On Structured Finance 04/08/2021
The Impact Of The FCA's Official LIBOR Cessation Dates On Structured Finance Host Tom Schopflocher is joined by Senior Director John Detweiler to discuss the Financial Conduct Authority's (FCA) recent confirmation of the dates for the future cessation or loss of representativeness of global London Interbank Offered Rate (LIBOR) benchmarks. We weigh in on what the date confirmations' immediate impact could be for our ratings, and what cessation could mean overall for the Structured Finance market when it becomes effective.
info_outline 2021 Latin American Outlook: A Challenging Environment Won't Stop New Issuance 03/11/2021
2021 Latin American Outlook: A Challenging Environment Won't Stop New Issuance Latin American Sector Lead Jose Coballasi joins host Tom Schopflocher to discuss our 2021 Latin American Structured Finance outlook. While collateral performance improved in 2020, the surge in COVID-19 cases has led to increased restrictive measures in several countries in the region, and a very challenging economic environment. Although these conditions remain headwinds going into 2021, we expect issuance to increase modestly and for most asset classes to have stable ratings performance. We discuss our view of specific sectors and regions.
info_outline Private Equity Collateralized Fund Obligations Make An Appearance Amid COVID-19 02/25/2021
Private Equity Collateralized Fund Obligations Make An Appearance Amid COVID-19 Host Tom Schopflocher is joined by credit analysts Jie Liang and James Yu in a discussion about private equity collateralized fund obligations (CFOs). First, we provide a general background of what private equity CFOs are. Then, through the lens of the recent Astrea VI transaction, we discuss how we treat these types of deals in our analysis, especially with the COVID-19 pandemic as a backdrop.
info_outline Global Structured Finance Outlook: Resilience Could Mean Another $1 Trillion-Plus 01/26/2021
Global Structured Finance Outlook: Resilience Could Mean Another $1 Trillion-Plus In our first episode of the year, hosts Tom Schopflocher and James Manzi recap the COVID-19 pandemic's impact on 2020 performance, and then summarize S&P Global Ratings' 2021 outlooks and issuance forecasts for Structured Finance sectors by region.
info_outline The Danish Covered Bond Market 11/16/2020
The Danish Covered Bond Market We complete our coverage on European covered bonds with the Danish market, the largest in the world. Covered bonds analyst Casper Andersen returns with host Tom Schopflocher to provide insights into this market, including how its framework differs from others, the impact of the COVID-19 pandemic, and ESG.
info_outline U.S. Structured Finance Issuance Volume Picks Up The Pace 10/08/2020
U.S. Structured Finance Issuance Volume Picks Up The Pace Our hosts Tom Schopflocher and James Manzi give an update on U.S. structured finance issuance. Issuance returned to form in September, reaching $54 billion, the highest monthly total so far in the year. While 2020 year-to-date issuance is still down 21% year over year, it looks like the annual total will eclipse our revised midyear forecast.
info_outline The Swedish Covered Bond Market 10/01/2020
The Swedish Covered Bond Market We continue with our look at local covered bond markets, this time in Sweden. Covered bonds analyst Casper Andersen returns with host Tom Schopflocher to provide insights into this relatively young but large market, including how the recently approved European Covered Bond Framework could affect liquidity risk and the impact of the COVID-19 pandemic.
info_outline 2020 European Structured Finance Conference Recap: Where Do We Go From Here 09/17/2020
2020 European Structured Finance Conference Recap: Where Do We Go From Here Head of S&P Global Ratings EMEA Structured Finance Research Andrew South joins host Tom to recap our third annual European Structured Finance Conference. We touch on key takeaways from the conference such as what’s driving low issuance volumes, how the securitization markets have fared since COVID-19 began, and what the outlook could look like going forward.
info_outline Not-For-Profit Health Care SBPA-Backed VRDOs During COVID-19 08/27/2020
Not-For-Profit Health Care SBPA-Backed VRDOs During COVID-19 Analysts Anne Cosgrove, Alex Gombach, and Santos Souffront join our host Tom to discuss U.S. public finance health care variable-rate demand obligations (VRDOs). We first introduce and detail what standby bond purchase agreement (SBPA)-backed VRDOs are and how we rate them. We then look at how not-for-profit health care providers can turn to this form of financing to help offset their significant operating losses and negative cash flow impacts due to COVID-19, as well as discuss our outlooks for both the health care sector and the SPBA market.
info_outline The German Covered Bond Market 08/13/2020
The German Covered Bond Market Host Tom Schopflocher talks to credit analyst Casper Andersen about the current state of German covered bonds, or Pfandbriefe. Germany has the second-largest covered bond market and the largest euro benchmark market, with outstanding issuances totaling €355 billion in 2020. German covered bonds should be able to withstand the challenges created by COVID-19, and despite little room for change, new green and social German covered bonds are spurring investor interest.
info_outline Revised Global 2020 Structured Finance Issuance Forecasts 07/28/2020
Revised Global 2020 Structured Finance Issuance Forecasts In our first episode back, hosts Tom Schopflocher and James Manzi discuss how COVID-19 has hampered structured finance issuance levels across the globe, leading us to trim our 2020 forecast by a quarter to $830 billion—and breaking the annual streak of $1 trillion global issuance.
info_outline ESG And Other Key Takeaways From SFVegas 2020 03/12/2020
ESG And Other Key Takeaways From SFVegas 2020 Hosts Tom and Jim cover hot topics from this year’s SFVegas. Matt Mitchell joins to discuss ESG, which remains a challenge in the structured finance markets due to the lack of data standardization, as well as how the importance of individual E, S, and G factors varies between issuers and investors.
info_outline 2020 Global Structured Finance Outlook: Another $1 Trillion-Plus 01/17/2020
2020 Global Structured Finance Outlook: Another $1 Trillion-Plus Hosts Tom Schopflocher and Jim Manzi discuss our expectation of another $1 trillion-plus in issuance volume for Global Structured Finance in 2020, as well as our view of some factors that could affect the market in the coming year.
info_outline Non-QM Market Deep Dive 12/12/2019
Non-QM Market Deep Dive Hosts Tom Schopflocher and Jim Manzi take a deeper look at the non-QM market, which has been doubling and then some every year for the past few years. With about $20 billion+ in issuance, we explore borrower and loan characteristics, as well as what differentiates non-QM from subprime loans.
info_outline Covering More New Ground: The Rise Of Sustainable Covered Bonds 11/07/2019
Covering More New Ground: The Rise Of Sustainable Covered Bonds We’re following up on our previous covered bonds episode with a discussion on the new flavor of environmental- and social-themed covered bonds on the rise. Our host Tom and analysts Corinne Bendersky and Adriano Rossi touch on how the capital market for these particular sustainable bonds is developing, the nature of the collateral backing these bonds, and how we measure the social impact. We also discuss how we capture green and social factors and overall ESG performance in our credit rating criteria.
info_outline Incorporating ESG Into Our Structured Finance Framework 10/17/2019
Incorporating ESG Into Our Structured Finance Framework ESG is everywhere lately, but how does it fit into structured finance? We’ve long considered ESG in our analysis, but when one of the three becomes material enough to a transaction’s ability to make payments, it could be an “ESG credit factor.” Ildi Szilank and Matt Mitchell join us to discuss how relevant ESG credit factors are to structured finance ratings and examples ESG-related events in the sector.
info_outline Conference Recap: ABS East 2019 10/03/2019
Conference Recap: ABS East 2019 It’s Take Notes’ first anniversary! We head back to ABS East, where S&P Global Ratings hosted and attended a variety of panels, and cover the most-discussed topics, including whole business securitizations, the non-QM mortgage market, LIBOR, ESG, and the future of blockchain in securitization.
info_outline U.S. Student Loans: Should We Forgive And Forget? 09/26/2019
U.S. Student Loans: Should We Forgive And Forget? ABS Senior Director John Anglim joins the podcast to demystify U.S. student loans. We dive into a breakdown of the 45 million borrowers who own the $1.6 trillion+ debt burden. We then debate whether or not student loan forgiveness is a viable long-term solution, or if it’s just merely a band aid for a larger systemic issue with education costs.
info_outline What Are Investor Property DSCR Loans? 09/19/2019
What Are Investor Property DSCR Loans? They use a commercial mortgage underwriting metric, but they're popping up in the residential space and are QM-exempt--so what exactly are DSCR loans? RMBS analyst Jeremy Schneider returns to Take Notes to discuss the housing, demographic, and securitization trends that suggest DSCR loans are on the rise.