SF credit rating: November’s $ 97 billion U.S. structured finance issue marks second consecutive monthly record


New structured finance issuance in the United States totaled $ 97 billion in November 2021 across the four major industry sectors: Asset Backed Securities (ABS), Commercial Mortgage Backed Securities (CMBS) , Secured Loan Bonds (CLOs) and Residential Mortgage Backed Securities (RMBS). The November issue brought the total of those four sectors in 2021 to $ 743 billion, a 75% increase from $ 426 billion a year earlier. Structured finance issues through November 2021 exceeded all annual volumes since the Great Recession, and the November issue marks the highest monthly volume since that time. In addition, the top four sectors have now eclipsed our forecast for the full year and continue to continue their higher pace than last year. CLOs remain in the lead, growing 116% year-on-year, and CMBS are not far behind.

CLO refinances (refis) and resets, which we do not count in total new issues, reached around $ 235 billion in November. This brings total CLO issuance to $ 412 billion, up $ 127 billion from the record high of $ 285 billion set in 2017 while issuance of RMBS and ABS increased by 62% and 53 respectively. %.

Sector breakdown

abs

ABS issuance totaled $ 34 billion in November, marking the highest month of the year. Of this amount, auto loan and leasing ABS totaled more than $ 13 billion, esoteric / non-traditional ABS totaled $ 12 billion, credit card ABS recorded $ 5 billion, the student loan was over $ 2 billion and the personal loan abs was around $ 2 billion (slight differences in totals may exist due to rounding).

CLO

New CLO issues also hit a new monthly record, with $ 26 billion in November, while refis and resets totaled $ 17 billion. The year-to-date (year-to-date) refi and reset issuance volume of $ 235 billion through November continued to grow from the annual record of $ 167 billion set in 2017, while New issuance volume of $ 177 billion surpassed the previous record of $ 129 billion set in 2018.

CMBS

Private label CMBS issuance, excluding commercial real estate CLOs (CRE), totaled about $ 15 billion in November, bringing the cumulative total to $ 102 billion. These issues included four conduit deals totaling $ 4 billion and 11 single-borrower deals totaling $ 11 billion. The single-borrower sector has been extremely active this year, accounting for 73% ($ 75 billion) of all private label CMBS (excluding CRE CLO) issued. Conduits’ YTD issue totaled more than $ 27 billion, including the roughly $ 4 billion issued in November. YTD issues from CRE CLOs totaled $ 44 billion, including seven transactions totaling $ 7 billion valued in November.

RMBS

RMBS issues totaled $ 22 billion in November. This included over $ 4 billion in blue chip deals (including jumbo premiums), about $ 4 billion in non-qualifying mortgages, about $ 3 billion in single-family rentals, over $ 2 billion in transfer. in credit risk, $ 2 billion in eligible agency loans, $ 2 billion in reproductive / non-performing loans, and an additional $ 2 billion in investor loans. The rest included modest offers of other types of collateral, including reverse mortgages, seasoned performing loans, and mortgage management rights, among others.

Annual distribution

This will be our last monthly publication on US structured finance issues this year. Our totals for the year 2021 will be available in our article on the outlook for global structured finance 2022, which we expect to publish in the second week of January 2022. The table below shows the distribution of structured finance issues to United States until November 30, 2021.

US structured finance issue YTD

(Mil. $)

2015

2016

2017

2018

2019

2020

Year 2020

2021 YTD

2021F

abs

183

191

229

239

244

193

190

289

260

CMBS

95

69

88

77

96

53

48

102

80

CLO

98

72

118

129

118

93

81

177

140

RMBS

54

34

70

95

124

114

108

175 (ii)

150

Total new issue in the United States

430

366

505

540

582

453

426

743

630

CLO reset / refi (i)

ten

39

167

156

43

33

28

235

N / A

CRE CLO (i)

5

3

8

14

18

8

8

44

N / A

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