-

KBRA Releases Research – Risks to Spread Widening

NEW YORK--(BUSINESS WIRE)--KBRA examines risks to the status quo against a “soft landing/no recession” backdrop, with unsecured credit spreads trading well through long-term averages. While economic slowdown typically occurs after the Federal Reserve completes its hiking cycle, we believe it is too early to dismiss the long and variable lagged effects of not only monetary tightening on the part of the Fed, but also more restrictive lending standards on the part of banks.

Moreover, we believe the central bank is incentivized to leave rates higher for longer in its efforts to fully tame inflation. All of this represents a significant headwind to equity valuations, where history tells us that any correction in those markets is likely to lean on credit spreads.

Click here to view the report.

Related Publications

About KBRA

KBRA is a full-service credit rating agency registered in the U.S., the EU and the UK, and is designated to provide structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.

Contacts

Van Hesser, Senior Managing Director and Chief Strategist
+1 646-731-2305
van.hesser@kbra.com

Alexander Kim
+1 215-882-5911
alexander.kim@kbra.com

KBRA

Details
Headquarters: New York City, New York
CEO: Jim Nadler
Employees: 400+
Organization: PRI

Release Versions

Contacts

Van Hesser, Senior Managing Director and Chief Strategist
+1 646-731-2305
van.hesser@kbra.com

Alexander Kim
+1 215-882-5911
alexander.kim@kbra.com

More News From KBRA

KBRA Assigns Preliminary Ratings to IGS Solar Shamrock Issuer 2026-1, LLC

NEW YORK--(BUSINESS WIRE)--KBRA assigns preliminary ratings to two classes of notes issued by IGS Solar Shamrock Issuer 2026-1, LLC. The transaction is collateralized by a diversified pool of 18,488 leases and power purchase agreements (PPAs) associated with residential solar photovoltaic installations (PV Systems). The total Aggregate Discounted Solar Asset Balance (ADSAB) based on a discount rate of 7.25%, consisting of the discounted payments of the leases and PPAs, is approximately $374.7 m...

KBRA Assigns Preliminary Ratings to Hildene 2026-NQM1 Mortgage Trust (HILD 2026-NQM1)

NEW YORK--(BUSINESS WIRE)--KBRA assigns preliminary ratings to ten classes of mortgage pass-through certificates from Hildene 2026-NQM1 Mortgage Trust (HILD 2026-NQM1), an RMBS transaction sponsored by Hildene-CCC Loan Acquisition II, LLC (“Hildene”), with mortgage loans acquired from Button Finance, Inc., acting as the aggregator. The $292.5 million transaction is collateralized by a pool of 381 residential mortgages, including a meaningful concentration of collateral that KBRA considers to be...

KBRA Assigns Preliminary Ratings to PMT Loan Trust 2026-INV10 (PMTLT 2026-INV10)

NEW YORK--(BUSINESS WIRE)--KBRA assigns preliminary ratings to 99 classes of mortgage-backed notes from PMT Loan Trust 2026-INV10 (PMTLT 2026-INV10), a prime RMBS transaction sponsored by PennyMac Corp. (PennyMac), an indirect, wholly-owned subsidiary of PennyMac Mortgage Investment Trust (PMT). PMTLT 2026-INV10 comprises 1,081 fixed-rate mortgages (FRMs) with an aggregate principal balance of $409.1 million as of the November 1, 2026 cut-off date. The underlying pool consists of agency-eligibl...
Back to Newsroom