KBRA Releases Research – Structured Credit Trend Watch: The First Cut Is Behind Us

NEW YORK--(BUSINESS WIRE)--
KBRA releases research examining trends across the structured credit landscape. It has been a banner year for broadly syndicated loans (BSL) and middle market collateralized loan obligations (CLO). With approximately $146 billion of new issuance year-to-date (YTD), 2024 has already eclipsed the full-year (FY) 2023 new issuance total of $115 billion. The market for floating rate issuers should further benefit from the Federal Open Market Committee’s (FOMC) 50-basis point (bp) cut to the federal funds rate on September 18. Cheaper funding costs for floating rate liability structures can make arbitrage dynamics more attractive (assuming stable loan spreads). With inflation cooling and additional rate cuts projected well into 2025, the backdrop for underlying corporate borrowers—which have been burdened by elevated borrowing costs for the better part of the past few years—is constructive.

The report provides an overview of the overall structured credit market, including new issue deal volume, benchmark spread levels, notable activity, and other trends through Q3 2024. In addition, we provide a recap of KBRA’s 2024 rating and surveillance activity

Click here to view the report.

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• European CLOs: Too Big to Hold?
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• Private Credit: Potential for European MM and Direct Lending CLOs
• European CLO Manager Style Comparisons: April 2024 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.

Doc ID: 1006167

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Sean Malone, Managing Director, Co-Head of Global Structured Credit

+1 646-731-2436

sean.malone@kbra.com

Gabriele Gramazio, Senior Director

+44 20 8148 1001

gabriele.gramazio@kbra.com

Eric Hudson, Senior Managing Director, Co-Head of Global Structured Credit

+1 646-731-3320

eric.hudson@kbra.com

Eric Thompson, SMD, Global Head of Structured Finance Ratings

+1 646-731-2355

eric.thompson@kbra.com

Media Contact

Adam Tempkin, Director of Communications

+1 646-731-1347

adam.tempkin@kbra.com

Business Development Contact

Jason Lilien, Senior Managing Director

+1 646-731-2442

jason.lilien@kbra.com

Source: Kroll Bond Rating Agency, LLC