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KBRA Releases ABS Research - 2021 Sector Outlook: Stormy Seas; Calm on the Horizon?Kroll Bond Rating Agency (KBRA) releases its ABS (News - Alert) 2021 Sector Outlook, which examines recent ABS credit trends, spread performance, supply expectations, rating changes, as well as recent performance in our auto loan and unsecured consumer loan indices. The past year has been extremely challenging from a credit perspective, especially following a decade of economic expansion with only a few hiccups along the way, all seemingly minor in retrospect. However, ABS investors should be heartened by how well most ABS sectors have performed overall amid the unprecedented economic shock. While some sectors have taken a beating (and will likely continue to in 2021), particularly aviation lease, small business loan, and rental car ABS, most asset classes have performed better than expected. As we look forward to the year ahead, we are cautiously optimistic. The ABS markets bent, but did not break, amid the worst labor market shck since the Great Depression. Although plenty of downside risks will remain throughout next year, we believe new issue volumes will likely climb, spreads will likely tighten, and credit fundamentals will likely continue to hold firm across the majority of the ABS market. Click here to view the report. About KBRA and KBRA Europe KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency (CRA) with the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA. Kroll Bond Rating Agency Europe Limited is located at 6-8 College Green, Dublin 2, Ireland.
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