Frontline Perspectives: U.S. Consumer ABS Outlook

Presented by

Ines Beato, Jon Riber, Du Trieu, and Stephanie Mah

About this talk

This year, we face a challenging and uncertain economic backdrop. In the spring of 2022, the U.S. had its first quarterly decline in real GDP following six consecutive quarters or growth. The Fed reversed course and pulled back from its accommodative monetary policy measure with seven successive interest rate increases since March 2022. While consumers displayed resiliency throughout the pandemic, much of that strength was heavily supported by federal stimulus measures, which have since expired. Nonetheless, DBRS Morningstar has a stable credit rating outlook across U.S. consumer asset-backed securities (ABS). DBRS Morningstar expects to see some deterioration in underlying consumer ABS collateral performance amid this inflationary environment with rising costs of goods, particularly across subprime auto and consumer loans, but we believe structural mechanisms such as deleveraging and credit enhancement will help mitigate this expected decline in collateral performance. Join DBRS Morningstar on January 31st at 2:00 p.m. EST for a Frontline Perspectives webinar moderated by Stephanie Mah, Senior Vice President, Structured Finance Research. We will focus on the U.S. Consumer ABS Outlook for 2023, with shared perspectives from U. S. ABS Senior Vice Presidents Ines Beato, Jon Riber, and Du Trieu. The presentation will include an overview of major factors impacting the ABS market including specifics across consumer ABS sectors including auto loans, credit card receivables, consumer loans, student loans, and timeshare . The discussion will be followed by a Q&A session for the audience to participate in the conversation.
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Morningstar DBRS is a leading provider of independent rating services and opinions for corporate and sovereign entities, financial institutions, and structured finance instruments globally. Rating more than 4,000 issuers and 60,000 securities, we are the fourth-largest credit rating agency in the world and a market leader in Canada, the U.S. and Europe in multiple asset classes.