Moody's Talks - Securitization Spotlight

Macro normalization will aid structured finance collateral in 2025

Both consumer and corporate structured finance obligors will benefit from falling interest rates and moderate economic growth, although high costs will keep straining some borrowers’ finances. In this episode, we’ll discuss other factors contributing to the Moody’s Ratings outlook for the sector in the year ahead.  Host: Aaron Johnson, Vice President – Research Writer Guest: Annabel Schaafsma, Managing Director, Global Structured Finance

ABS is among beneficiaries of music industry’s fight against AI use

As regulators bolster copyright protections amid widening artificial intelligence use in the music industry, music royalty ABS issuers and other copyright holders will benefit from the protections. Speaker: Giyora Eiger, VP-Sr Credit Officer at Moody's Ratings Host: Aaron Johnson, VP-Senior Research Writer at Moody's Ratings Related Research: * Music Royalty ABS and Music Companies – US: Protecting voices and copyrights from AI misuse will aid ABS and music companies [https://www.moodys.com/research/doc--PBC_1415748]

Consumer ABS and RMBS performance will continue to weaken moderately for remainder of H2

High rates and inflation will continue threatening consumers’ ability to pay their debts in some regions in the coming months, but solid job growth will temper the negative effect on performance. Speakers: Nick Monzillo, VP-Senior Analyst at Moody's Ratings; Gaby Trinkaus, Senior VP/Manager at Moody's Ratings; Gracie Zhou, VP-Senior Analyst at Moody's Ratings Host: Aaron Johnson, VP-Senior Research Writer at Moody's Ratings

AI-assisted underwriting has benefits and risks for structured finance transactions

The use of artificial intelligence in collateral underwriting comes with both benefits and risks to structured finance transactions, while jurisdictions take different approaches to AI regulation. Speakers: Peter McNally, VP-Sr Credit Officer at Moody's Ratings; Johann Grieneisen, VP-Senior Analyst at Moody's Ratings Host: Aaron Johnson, VP-Senior Research Writer at Moody's Ratings Related Research: * Artificial Intelligence - Structured Finance: AI used in asset origination brings benefits, risks and regulatory scrutiny [https://www.moodys.com/research/Artificial-Intelligence-Structured-Finance-AI-used-in-asset-origination-brings-Sector-In-Depth--PBC_1381636]

Credit-risk transfer transactions’ prominence grows as regulations evolve

As the regulatory environment continues to evolve, US and European banks have sought regulatory capital relief by offloading the credit risk of loans they make via special types of transactions. Guests: Warren Kornfeld, Senior Vice President at Moody's Ratings; Nick Monzillo, VP-Senior Analyst at Moody's Ratings; Frank Cerveny, VP-Senior Research Analyst at Moody's Ratings Host: Aaron Johnson, VP-Senior Research Writer at Moody's Ratings Related reports: * Auto ABS - US: Credit-linked notes include risks not seen in typical auto ABS; issuance is rising [https://www.moodys.com/research/Auto-ABS-US-Credit-linked-notes-include-risks-not-seen-in-Sector-In-Depth--PBC_1397135] * Banks and Structured Finance – US: Risk transfer gives banks protection, but more capital is better; ABS implications vary [https://www.moodys.com/research/Banks-and-Structured-Finance-US-Risk-transfer-gives-banks-protection-Sector-In-Depth--PBC_1396692] * Banks and Structured Finance – Europe: Output floor proposal could erode benefits of SRT for regulatory capital and risk management purposes [https://www.moodys.com/research/Banks-and-Structured-Finance-Europe-Output-floor-proposal-could-erode-Sector-In-Depth--PBC_1358330]