KBRA releases research analyzing U.S. consumer credit performance across securitized auto, consumer unsecured, and residential loan pools amid an ongoing climate of high inflation and rising interest rates.

Against this backdrop, credit performance has weakened across most consumer ABS sectors, including securitized auto and unsecured consumer loan pools, with low-income borrowers being the most affected. Comparatively, credit performance among securitized residential mortgage pools has not shown a similar deterioration, as home values have risen dramatically in recent years, which is likely incentivizing borrowers to prioritize their mortgages over other debt obligations.

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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.

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