<\/p>\n
Fitch sees defaults, arrears rising as growth slows amid tight financial conditions.<\/p>\n
As global economic growth slows and inflation persists, the structured finance sector will see asset performance weaken in the second half, says Fitch Ratings.<\/p>\n
In a new report, the rating agency forecast weaker performance in global structured finance, including various asset-backed and mortgage-backed securities segments, in the back half of 2024 after largely stable results in the first half.<\/p>\n
As growth weakens and elevated inflation keeps interest rates from dropping sharply, \u201cthe vast majority\u201d of asset performance indicators are expected to decline relative to 2023, Fitch said.<\/p>\n
Just over half of the global subsectors \u201chave deteriorating asset performance outlooks \u2026 reflecting the impact of inflation, higher rates and debt on corporate and household borrowers,\u201d it said. The remaining outlooks are neutral, it said.<\/p>\n
Fitch also said it expects \u201cmodest\u201d increases in home prices and mortgage arrears in 2024 for most of the countries it covers.<\/p>\n
Despite the deteriorating trends in asset performance, Fitch said it expects most structured finance credit ratings to remain stable, \u201csupported by credit enhancement growth from continued deleveraging and robust structural protections.\u201d<\/p>\n
Securities backed by North American commercial mortgages account for the bulk of the issuers with negative rating outlooks (78%), given the deterioration in office real estate.<\/p>\n
\u201cWe expect U.S. commercial mortgage-backed securities delinquencies to rise gradually through 2025, with office delinquencies nearly doubling by the end of 2024,\u201d it said.<\/p>\n
U.S. residential mortgage-backed securities represent another 7% of the negative outlooks, Fitch said, but issuers in this segment also account for most of the positive rating outlooks too.<\/p>\n
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Fitch sees defaults, arrears rising as growth slows amid tight financial conditions. As global economic growth slows and inflation persists, the structured finance sector will see asset performance weaken in the second half, says Fitch Ratings. In a new report, the rating agency forecast weaker performance in global structured finance, including various asset-backed and mortgage-backed […]<\/p>\n","protected":false},"author":1,"featured_media":2043,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2042","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bez-rubriki"],"featured_image_src":{"landsacpe":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2024\/07\/Investment-agreement-2-1080x445.jpeg",1080,445,true],"list":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2024\/07\/Investment-agreement-2-463x348.jpeg",463,348,true],"medium":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2024\/07\/Investment-agreement-2-300x200.jpeg",300,200,true],"full":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2024\/07\/Investment-agreement-2.jpeg",1080,720,false]},"_links":{"self":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/2042","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/comments?post=2042"}],"version-history":[{"count":1,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/2042\/revisions"}],"predecessor-version":[{"id":2044,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/2042\/revisions\/2044"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/media\/2043"}],"wp:attachment":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/media?parent=2042"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/categories?post=2042"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/tags?post=2042"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}