Risk on to continue, but expect some asset classes to shrink in 2018 — Kroll

By Sasha Padbidri
20 Dec 2017

Brian Ford, head of structured finance research at Kroll Bond Rating Agency, told GlobalCapital this week that the strong risk on investor sentiment seen this year will carry into 2018, but added that autos and non-agency MBS volumes could decline from 2017 levels.

The “risk-on” environment, buoyed by low interest rates, will continue into 2018, with “some room” for spread tightening down the capital stack, Ford said.

According to Kroll data, spreads across structured product issuance in 2017 fell to “multi-year tights”, with short duration triple-A paper from prime autos and ...

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