Across commercial ABS, we have negative collateral performance outlooks on the equipment lease (primarily small ticket and transportation-backed transactions) and small business loan sectors, as we expect higher delinquencies and defaults coincided with lower recovery rates in 2024. However, we have stable credit rating outlooks on both sectors because of the relatively short term of collateral assets and generally deleveraging transaction structures. Meanwhile, we have stable outlooks on both aviation and
C-PACE ABS.
Join Morningstar DBRS at 2:00 p.m. EST for a Frontline Perspectives webinar on the U.S. Commercial ABS 2024 Outlook as we address the challenges facing each sector. Moderated by Stephanie Mah, Senior Vice President, Structured Finance Research, our presentation will include shared perspectives from senior Morningstar DBRS analysts, presenting an overview of major factors affecting commercial ABS sectors including aviation, commercial PACE, equipment leases, and small business ABS. The discussion will be followed by a Q&A session for the audience to participate in the conversation.