KBRA Releases RMBS Trend Watch
NEW YORK, NY (July 17, 2018) – Kroll Bond Rating Agency (KBRA) has observed a number of notable trends throughout Q2 2018. In this edition of KBRA’s RMBS Trend Watch, we discuss:
Issuance Volume, Spreads: Although spreads modestly widened in Q2 2018, the quarter yielded record RMBS 2.0 issuance.
Performance Data: Performance has generally been benign, and as more market participants enter the Non-Prime space and loan offerings expand, prepayment speeds should not slow as much as the broader RMBS market as rates rise.
Infrequent, but Idiosyncratic, Losses in Prime: While post-crisis Prime transactions have had minimal liquidation losses, a few surprising idiosyncratic losses have been realized.