A Transition from LIBOR

Due largely to recent LIBOR manipulation scandals, regulators in the US are set to phase LIBOR out by the end of 2021 and replace it with the Secured Overnight Financing Rate (SOFR), pressuring market participants to quickly understand and adopt SOFR (refer to our...

Consumer ABS

Unlike senior unsecured corporate bonds, ABS transactions are structured so senior tranches are able to maintain AAA ratings even if there is material deterioration in fundamentals.

Credit Cycle Rolls On

The Fed’s positioning still leaves room for a pivot back to hawkish, but the window may have already closed for additional hikes as traders are now predicting a greater than 75% chance for a rate cut by the end of the year.

Rosy Markets

Sentiment for risks assets has vastly improved as fear of a recession induced by monetary policy missteps eased considerably with the Fed explicitly stating during its January meeting that it will remain patient not only in interest rate hikes but also in balance...

All About the Expectations

More recently, statements from Fed officials and minutes from the December FOMC meeting have firmly anchored dovish expectations at least through the first quarter of the year as policymakers reinforced the ability to remain patient in the implementation of monetary...