Conversations in European Credit

In this episode, KBRA’s European Macro Strategist Gordon Kerr concludes Conversations in European Credit and highlights the launch of his new KBRA podcast, Credit Compass: Navigating European Credit Markets. The new podcast will serve as a guide for navigating the complexities of European credit and capital markets from a broader macro perspective. It will offer valuable insights and analysis to help investors stay informed and ahead of market trends. Be sure to convert your subscription to the new podcast.

In this episode of Conversations in European Credit, KBRA Head of European Research, Gordon Kerr, speaks with Killian Walsh and Karl Cummins from KBRA’s ABS ratings team about the introduction of a new collateral type to European securitisation markets: solar photovoltaic loans. Their conversation covers a discussion about the KBRA-rated transaction—Enpal’s Golden Ray—and the potential future development of the market. The rating report and research can be found on kbra.com.

In this episode of Conversations in European Credit, KBRA Head of European Research, Gordon Kerr, speaks with Killian Walsh from KBRA’s ABS ratings team. Their discussion highlights the active use of an important bank capital tool: synthetic risk transfer transactions. These products have developed as an active market in Europe but are also a growing tool in the US. The content for the conversation is based on a recently published research report that can be found on kbra.com.

In this episode of Conversations in European Credit, KBRA Head of European Research, Gordon Kerr, speaks with Kali Sirugudi from KBRA’s RMBS ratings team. Their discussion highlights the growing specialist lender market in the UK and the use of securitisation markets for funding. Can the market continue to grow? Kali and Gordon outline the various niches that these lenders have stepped into and the challenges they face to continue to grow. The content for the conversation is based on a recently published research report that can be found on kbra.com. 

In this episode of Conversations in European Credit, KBRA Head of European Research, Gordon Kerr, speaks with Asia Drobnik from KBRA’s financial institutions ratings team. The discussion outlines the current health of the European banking system as banks prepare for the final implementation of Basel IV regulations. The conversation draws on a recently published research on kbra.com.

In this episode, KBRA’s Head of European Research, Gordon Kerr, speaks with colleague Paul De Lange, from the Investor Relations team. The conversation focuses on the strong levels of issuance in the European securitisation market during first-half (1H) 2024, with volumes reaching their highest levels since 1H 2007. To help put the strong performance into perspective, Gordon and Paul cite a recent KBRA research report which showed, among other findings, that transactions sold to investors surged during Q2 and newly circulated transaction volumes broke a post-global financial crisis record.  

In this episode, Gordon Kerr, Head of European Research, speaks with Karim Nassif from KBRA’s project finance and corporate ratings team. The discussion outlines the proposed development of offshore wind in Ireland, which has outlined ambitious plans to deliver 20GW by 2040. The content for the conversation is based on a recently published research report that can be found on kbra.com.  

In this episode, Gordon Kerr, KBRA Head of European Research, speaks with Gabriele Gramazio from KBRA’s Structured Credit ratings team. Gabriele and Gordon discuss the large exposures held within European CLOs and the idiosyncratic risks associated with leveraged loans across the market. The conversation focuses on the content from a recently published research report that can be found on kbra.com.

In this episode, Gordon Kerr, Head of European Research, engages in an interesting conversation moderated by Luigi Griffo from KBRA’s European Investor Relations team. Gordon comments on the recently published results from KBRA’s fifth European Securitisation Survey. The conversation focuses on aggregated investor responses and the resulting views for the direction of the market in the second half of the year. The full research report can be found on kbra.com.

In this special episode of Conversations in European Credit dedicated to macro themes, Ken Egan from KBRA’s Sovereign Ratings team connects with KBRA Head of European Research, Gordon Kerr, to discuss the European labour market—where expectations have changed, where they are going, and their implications. KBRA’s continued mission to help illuminate the many trends taking shape across the markets are highlighted in these special episodes as Gordon and Ken discuss and share insights on the next “big thing” emerging from the sea of opinions. Further details on KBRA’s views may be found on kbra.com.

In this episode of Conversations in European Credit, Asia Drobnik from KBRA’s Financial Institutions ratings team, Ken Egan from KBRA’s Sovereign ratings team, and Kali Sirugudi from KBRA’s Residential Mortgage-Backed Securities ratings team sit down with KBRA Head of European Research Gordon Kerr to discuss the UK building societies. Asia, Ken, and Kali highlight the challenges within the UK economy and housing market and how these are managed by the building society sector. Further details on KBRA’s views may be found on kbra.com.

In this episode of Conversations in European Credit, Karl Cummins and Killian Walsh from KBRA’s Asset-Backed Securities ratings team sit down with KBRA Head of European Research, Gordon Kerr, to discuss the launch of KBRA’s European Auto ABS performance indices. Killian, Karl, and Gordon outline the creation of these indices and the coverage they offer. The new European indices complement our collection of monthly credit indices focused on US credit performance in the auto, marketplace consumer, solar, residential mortgage, and equipment loan/lease sectors. Further details on KBRA’s views may be found on kbra.com.

In this episode of Conversations in European Credit, Kali Sirugudi from KBRA’s Residential Mortgage-Backed Securities ratings team sits down with KBRA Head of European Research, Gordon Kerr, to examine the housing and mortgage market in Ireland. Kali and Gordon discuss how this market faces challenges ahead despite making significant progression over the past 10 years after enduring the consequences of the global financial crisis. Further details on KBRA’s views may be found on kbra.com.

In this episode of Conversations in European Credit, Gabriele Gramazio from KBRA’s Structured Credit ratings team sits down with KBRA Head of European Research, Gordon Kerr, to discuss the increasing number of CLOs reaching the end of their reinvestment periods. Since these securities have begun to amortise, Gabriele and Gordon examine how the rate they pay down is influenced by a number of factors. Further details on KBRA’s views may be found on kbra.com.

In this special episode of Conversations in European Credit dedicated to macro themes, Ken Egan from KBRA’s Sovereign Ratings connects with KBRA Head of European Research, Gordon Kerr, to discuss interest rates—where expectations have changed, where they are going, and their implications. KBRA's continued mission to help illuminate the many trends taking shape across the markets are highlighted in these special episodes as Gordon and Ken discuss and share insights on the next “big thing” emerging from the sea of opinions. Further details on KBRA’s views may be found on kbra.com.

In this episode, Ken Egan from KBRA’s Sovereign Ratings team and Karim Nassif from KBRA’s European Corporates team engage with Gordon to discuss the influence of geopolitics on energy markets. Gordon, Ken, and Karim outline the impact of geopolitical tensions on energy and shipping, as well as the potential effect on European corporates. Further details may be found on kbra.com.

In this episode, KBRA’s Co-Head of Europe, Yee Cent Wong, joins Gordon Kerr in a discussion about commercial real estate (CRE) exposures in covered bond collateral pools. The podcast outlines the characteristics of European cover pools that contain CRE lending and the challenges they face.

In this episode, Gabriele Gramazio, KBRA Structured Credit analyst, engages with Gordon on the rapid expansion of private credit, direct lending and middle market loans and how this has raised the prospect for their participation in the capital markets. Gordon and Gabriele outline some of the reasons for this as well as how they could potentially be structured.

In this episode, the second of two episodes on the topic, Gordon Kerr, Head of European Research engages in a conversation with several of KBRA’s European analysts on the Outlook for European securitisation in 2024. Gordon is joined by Killian Walsh from KBRA’s European ABS ratings team, Karl Cummins, also from KBRA’s European ABS ratings team, and Gabriele Gramazio from the European structured credit team. The conversation focuses on the European securitisation market, with a focus on potential issuance levels as well as how performance is likely to evolve in the ABS and CLO markets in 2024. The sector outlook report published by KBRA provides more detailed information which serves as background for this discussion. Greater detail can be found on kbra.com.

In this episode, the first of two episodes on the topic, Gordon Kerr, Head of European Research engages in a conversation with several of KBRA’s European analysts on the Outlook for European securitisation in 2024. Gordon is joined by Ken Egan from the European Sovereigns team at KBRA, Kali Sirugudi from the European RMBS ratings team, and Caitlin Parrella from the European CMBS ratings team. The conversation focuses on the European securitisation market, with a focus on the economic environment and the RMBS and CMBS sectors, including how performance is likely to evolve in 2024. The sector outlook report published by KBRA provides more detailed information which serves as background for this discussion. Greater detail can be found on kbra.com.

In this episode, Gordon Kerr, Head of European Research, engages in an interesting conversation with himself. Moderated by Luigi Griffo from KBRA’s European Investor Relations team, Gordon comments on the recently published survey results from KBRA’s fourth European Securitisation survey. The conversation focuses on aggregated investor responses and the resulting views for the direction of the market in the new year. The full research report covering the survey as well as KBRA’s own views on the outlook for the market in 2024 can be found on kbra.com.

In this episode, Gordon Kerr, Head of European Research at KBRA, engages in a topical conversation with Fabio Di Giansante, Head of Large Cap European Equities at Amundi, and Karim Nassif from KBRA’s European Corporates team. The three discuss the European corporate sector, the impact cost inflation and rate hikes have had on performance, and how this environment will likely evolve in 2024. Amundi is the largest asset management firm in Europe, with over EUR2 trillion in assets under management, and Fabio provides his insight into the direction of the market. A recent KBRA research report highlights some of the background for this discussion. 

In this episode, Head of European Research Gordon Kerr discusses the growth in alternative fuel passenger vehicles and secondhand values with members of the European ABS ratings team. Gordon engages in a conversation with Karl Cummins and Christopher Noonan about the current state of used vehicle values in the UK and European Union. A recent KBRA research report outlines the challenging market for battery powered vehicles in greater detail, which can be found on kbra.com.

In this episode, Gordon Kerr, Head of European Research discusses the resilient profiles of KBRA rated asset managers, with members of the KBRA Financial Institutions ratings team; Asia Drobnik, Claudia McPherson, Leah Hallfors, and Patricia Cantwell. Gordon engages in a conversation with the team about the private equity and private credit firms under KBRA’s rating coverage and their ability to weather current market conditions. KBRA’s report on the topic in greater detail can be found on kbra.com.

In this episode, Gordon Kerr, Head of European Research discusses the current situation in the European employment market with Ken Egan from the KBRA sovereign ratings team. Gordon engages in a conversation with Ken about the current employment market in Europe and the challenges that the current tight labour market situation presents to economies and markets. KBRA’s report on the topic in greater detail can be found on kbra.com.

In this episode, Gordon Kerr, KBRA’s Head of European Research, discusses the equity release (or reverse mortgage) sector with his colleagues Kali Sirugudi, Managing Director, and Ed DeVito, Senior Managing Director, from the RMBS team. They discuss the growth of the sector in UK, Europe, and the US, as well as the challenges of analysing the product. KBRA’s reverse mortgage methodology and reports covering all three regions can be found on kbra.com.

In this episode, Gordon Kerr, Head of European Research discusses the UK Buy-to-Let mortgage sector and the challenges it faces as interest rates rise. Gordon engages with KBRA’s Kali Sirugudi from KBRA’s RMBS team in a conversation about the challenges faced by landlords as they face refinancing challenges amongst other changes. A copy of the full report can be found on kbra.com.

In this episode, Gordon Kerr, KBRA’s Head of European Research, discusses our latest European Securitisation Survey, which polls structured finance investors about their views and expectations regarding the market, as well as the Global ABS 2023 conference. Gordon talks to Luigi Griffo from KBRA’s investor relations team about the survey’s results, what they say about 2H 2023, and how they relate to themes from the recent industry conference. The full survey report can be found on kbra.com.

In this episode, Gordon Kerr, Head of European Research discusses the European Auto securitisation market as it accelerates towards the use of green collateral. Gordon engages with KBRA’s Karl Cummins from KBRA’s European ABS ratings team in a conversation about the sales of low carbon powered vehicles and their growing presence in European securitisations. A copy of the full report can be found on kbra.com.

In this episode, Gordon Kerr, Head of European Research discusses the European Green Industrial Plan. Gordon engages with KBRA’s Emilie Nadler from KBRA’s environmental, social and governance team and Karim Nassif from KBRA’s project finance and corporate ratings team in a conversation about the introduction of these intentions from the European Commission and their potential credit implications. A copy of the full report can be found on kbra.com.

In this episode, Gordon Kerr, KBRA’s Head of European Research, examines UK building societies and the increasingly challenging environment they face. Gordon discusses this topic with Asia Drobnik from KBRA’s financial institutions ratings team and Kali Sirugudi from its RMBS team, touching on inflation, house prices, mortgage lending, interest rates, and how well the building societies can cope with rising headwinds. A copy of the full report can be found on kbra.com.

In this episode, Gordon Kerr, KBRA’s Head of European Research, discusses the impact of rising interest rates and affordability of mortgage lending on the Dutch housing market. He is joined by Kali Sirugudi, from KBRA’s residential mortgage-backed securities team. The analysts debate house prices, mortgage lending, interest rates, and the ongoing performance of the Netherlands’ housing market. A copy of the full report can be found on kbra.com.

In this episode, Gordon Kerr, Head of European Research discusses the stabilisation of the European energy market and the impact on corporates, sovereigns, projects and infrastructure. Gordon engages with Karim Nassif from KBRA’s project finance and infrastructure team as well as Ken Egan from KBRA’s sovereign ratings team, in a conversation about how Europe’s energy market is impacting on various areas. Europe is experiencing a period of energy price stability, but as the region transitions to greater energy security and carbon neutrality, risks remain. A copy of the full report can be found on kbra.com.

In this episode, Gordon Kerr, KBRA’s Head of European Research, discusses the marked growth in private credit as highlighted in our recent report on the topic. Gordon is joined by Asia Drobnik and Patricia Cantwell from KBRA’s Financial Institutions team in a lively conversation about how the private credit market has grown to fill a gap left by bank lenders following the global financial crisis. A copy of the full report can be found on kbra.com.

In this episode, Gordon Kerr, Head of European Research discusses solar photovoltaic funding and KBRA’s report on the potential for the use of securitisation to support the green transition. Gordon engages with KBRA’s Emilie Nadler from KBRA’s ESG team as well as Kilian Walsh from the European ABS ratings team in a conversation about how the demand for rooftop solar PVs is growing. As Europe looks to transition to a greater use of renewables, funding will be needed. The US Solar ABS market offers a positive example on how solar expansion can be supported. A copy of the full report can be found on kbra.com.

In this episode, Gordon Kerr, Head of European Research discusses collateralised loan obligation manager styles and KBRA’s report. Gordon engages with KBRA’s Gabriele Gramazio from the structured credit ratings team, in a conversation about European CLO manager styles in their approach to managing pools of leveraged loans. A copy of the full report and subsequent updates; European CLO Manager Style Comparisons as well as the US version, U.S. CLO Manager Style Comparisons can be found on kbra.com.

In this episode, Gordon Kerr, Head of European Research discusses the support offered by the prudent debt management of European sovereigns over the past several years. Gordon engages with KBRA’s Ken Egan, from the sovereign ratings team, in a conversation about the challenging interest rate environment and how European sovereigns are in a positive position to manage through the increases in their yield curves. A copy of the full report European Sovereigns Demonstrate Shrewd Debt Management can be found on kbra.com.

In this episode, Gordon Kerr, Head of European Research discusses the Outlook for European Securitisation in 2023. In the second of a two-part series, Gordon engages with KBRA analysts to cover corporate-oriented collateral in European securitisations. Collateral challenges are expected to be the focus for 2023 as the recessionary environment takes hold and companies face the challenges of a slowdown and increased costs. KBRA analysts, Ken Egan from sovereign ratings, Killian Walsh from European ABS, Stephen Hughes from European CMBS, and Gabriele Gramazio from European CLOs cover the various challenges ahead for European corporate collateral and the impact on securitisation. A copy of the full European 2023 Outlook report can be found on kbra.com.

In this episode, Gordon Kerr, Head of European Research discusses the Outlook for European Securitisation in 2023. In the first of a two-part series, Gordon engages with KBRA analysts to cover consumer-oriented collateral in European securitizations. Collateral challenges are expected to be the focus for 2023 as the recessionary environment takes hold and consumers face increased cost of living. KBRA analysts, Ken Egan from sovereign ratings, Killian Walsh from European ABS, and Kali Sirugudi from European RMBS cover the various challenges ahead for European consumers and their impact on securitization. A copy of the full European 2023 Outlook report can be found on kbra.com.

In this episode, Gordon Kerr, Head of European Research is asked questions by Luigi Griffo from KBRA’s European Investor Relations about the results of a recent survey. Investors in the European Securitisation market were asked their views for issuance and performance in the short to medium term. This is the second KBRA survey in 2022, providing a dynamic picture as views change. The first survey in June 2022 painted a concerning picture as many challenges lay ahead. The environment still presents a difficult future, but the context has changed, as have investors views. Take a listen to some of the interesting views presented. A copy of the full report for December 2022, as well as the June 2022 survey can be found on kbra.com.

In this episode, Gordon Kerr, Head of European Research speaks with Kali Sirugudi from the RMBS ratings team about the impact of the current rising interest rate environment on commercial real estate in Europe. We engage in a discussion about how the Spanish housing market has adapted from its position pre-global financial crisis and is better prepared for the challenges ahead. In Spain, the housing market suffered dramatically in the wake of the global financial crisis with house prices collapsing and delinquencies and defaults surging. In 2023 the market will be challenged again, but KBRA argues that it is in a much better position than it was in 2007. Further reading on the topic can be found on kbra.com.

In this episode, Gordon Kerr, Head of European Research speaks with Stephen Hughes and Stacy Gross from the CMBS ratings team about the impact of the current rising interest rate environment on commercial real estate in Europe. We engage in a discussion about the potential impact of rates on commercial real estate loans, and commercial mortgage backed securities. Rate increases can have an impact on valuations and refinancings, impacting loan covenants and structures. Further reading on the topic can be found on kbra.com.

In this episode, Gordon Kerr, Head of European Research speaks with Karim Nassif, European Project Finance & Infrastructure, and Ken Egan, Sovereigns about the growing cost of energy in Europe and it’s impact. We engage in a discussion about the changing dynamics of the energy market in Europe, government actions and the consequences of the changing environment as Europe transitions away from a reliance upon Russian gas on industries, households, and the public sector. Further reading on the topic can be found on kbra.com.

In this episode, Gordon Kerr, Head of European Research, speaks with Kali Sirigudi, Managing Director, RMBS, about the challenges ahead for UK consumers. The two KBRA analysts discuss the potential impact of current developments impacting the average UK consumer and borrower. Further reading on the topic can be found on kbra.com.

In this episode, Gordon Kerr, Head of European Research speaks with Karim Nassif, Director, Project Finance & Infrastructure and Ken Egan, Director, Sovereigns about the recent developments in Europe with regards to Russian gas. In this podcast we engage in a discussion about the potential impact of Russian gas supply changes as Europe adjusts its reliance and how it may adjust in the ongoing energy transition. Further reading on the topic can be found on kbra.com.

In this episode, Gordon Kerr, Head of European Research speaks with Karim Nassif, Director, Project Finance & Infrastructure about the development of battery storage in Europe and the funding of its progress. In this podcast we engage in a discussion about the role of battery storage in the great energy transition as Europe adjusts to the need to expand the use of renewable technologies. Further reading on the topic and other renewable and project finance commentary can be found on kbra.com.

In this episode, Gordon Kerr, Head of European Research speaks with Yee Cent Wong, Co-Head of Europe, Kali Sirugudi, Managing Director, European RMBS, Kilian Walsh, Managing Director, European ABS, Stephen Hughes, Director, European CMBS, and Gabriele Gramazio, Director, European Structured Credit about the recent annual Global ABS conference for the securitization market. With market concerns on the horizon, it wasn’t all rosy on the beach in Barcelona. In this podcast we discuss insights that KBRA analysts have gleaned from their discussions with market participants. Further reading on the event can be found in the Daily Recaps in full on kbra.com.

In this episode, Gordon Kerr, Head of European Research speaks with Asia Drobnik, Senior Director, Financial Institutions and Kali Sirugudi, Managing Director, European RMBS about the UK mortgage and housing markets and how well the building societies are prepared for the challenges ahead. The discussion focuses on the findings of the recently published report – UK Building Societies: Prepared for the Challenges Ahead, available to read in full on kbra.com.

In the second episode of a two-part Conversations in European Credit, Gordon Kerr, Head of European Research speaks with several members of the KBRA team on the current environment:Gabriele Gramazio, Director, European CLOsKali Sirugudi, Managing Director, European RMBSKillian Walsh, Senior Director, European ABSStephen Hughes, Director, European CMBSIn the podcast, they will discuss the impact of conflict, inflation and interest rates and the resulting changes to the direction of European markets.

In the first episode of a two-part Conversations in European Credit, Gordon Kerr, Head of European Research speaks with several members of the KBRA team on the current environment:Joan Feldbaum-Vidra, Senior Managing Director, Sovereigns Garrett Tynan, Managing Director, European Head Project Finance & Infrastructure Joanna Drobnik, Senior Director, Financial Institutions Ken Egan, Director, SovereignsIn the podcast, they will discuss the impact of conflict, inflation and interest rates and the resulting changes to the direction of European markets.