Mountain Hawk II CLO class E and Flagship VII class F are the first two collateralized loan obligation tranches to default following the financial crisis more than a decade ago, according to a recent report from S&P.
Despite protests that existing yield maintenance protects investors from prepayment risk on agency CMBS, FHFA directed the Federal Home Loan Banks to limit their exposure.
At one point during the pandemic, used car prices were up 50% year over year. Now, appreciation is around 20%, prompting speculation that auto ABS performance will take a hit.
While ESG factors have mattered since the 1990s, KBRA analyst Eric Thompson said questions such as whether an asset will be impacted by rising sea levels are gaining more prominence.