U.S. structured finance new issuance totaled more than $57 billion in August 2021 across the industry's four major sectors: asset-backed securities (ABS), commercial mortgage-backed securities (CMBS), collateralized loan obligation (CLO), and residential mortgage-backed securities (RMBS). August's issuance brought these four sectors' year-to-date (YTD) total to $467 billion--an increase of over 65% from $283 billion a year ago. All four sectors are ahead of last year's issuance pace, with CLOs continuing to lead the way (with a 125% year-over-year increase).
CLO refinancings (refis) and resets, which we do not count in the new issue total, reached approximately $172 billion in August. August's total brings the combined CLO total to $282 billion, which will almost surely break the $285 billion full-year record over the next month. In addition, after trailing last year's tally through the first quarter, CMBS issuance is now up over 57% year over year, while ABS and RMBS issuances increased 55% and 46% year over year, respectively.
In July, we raised our full-year issuance forecast to $630 billion from our initial forecast of $520 billion due to the stronger-than-expected first half issuance, with all four major sectors contributing to our revised expectation (see "Global Structured Finance Midyear Outlook 2021: Issuance Forecast Raised To $1.4 Trillion," published July 20, 2021).
ABS issuance totaled $20 billion in August. Of this amount, auto loan and lease ABS was $9 billion, esoteric and nontraditional was $6 billion, student loan was over $3 billion, and credit card and personal loan each tallied approximately $1 billion apiece (slight differences in totals may exist due to rounding).
CLO new issuance reached approximately $19 billion in August, and refis and resets totaled $17 billion. The monthly new issuance was a record. Speaking of records, the YTD refi and reset issuance volume of $172 billion already eclipsed the annual record of $167 billion set in 2017.
Private-label CMBS issuance, excluding commercial real estate (CRE) CLOs, totaled roughly $5 billion in August. The issuance included two conduits for $1.6 billion and six single-borrower transactions accounting for $3 billion. The single-borrower sector has been extremely active this year, accounting for more than two-thirds ($38 billion) of the total private-label CMBS (excluding CRE CLOs) issued. In addition, with nearly $2 billion of issuance in August, conduits now total more than $18 billion. After the five CRE CLOs issued in July, a single transaction of $653 million priced in August, bringing the YTD total to $25 billion.
RMBS issuance totaled $14 billion in August. This included roughly $3 billion in prime (including prime jumbo) offerings, $2 billion in nonqualified mortgage, and $2 billion in single-family rental. The remainder comprised modest offerings from other types of collateral, including agency eligible loans, investor loans, reperforming loans, nonperforming loans, and real estate owned.
The table below shows a breakdown of U.S. structured finance issuance through Aug. 31, 2021.
|U.S. Structured Finance Issuance YTD|
|2015||2016||2017||2018||2019||2020||2020 YTD||2021 YTD||2021F|
|Total U.S. new issue||430||366||505||540||582||453||283||467||630|
|(i)Not included in new issue total. ABS--Asset-backed securities. CMBS--Commercial mortgage-backed securities. CRE--Commercial real estate. CLO--Collateralized loan obligation. RMBS--Residential mortgage-backed securities. YTD--Year to date. NA--Not available. Sources: S&P Global Ratings, LCD/S&P Global Market Intelligence, Bloomberg, Intex, Asset-Backed Alert, and Commercial Mortgage Alert. Note: Figures were rounded after calculations, and may be revised from time to time based on new information.|
This report does not constitute a rating action.
|Primary Contact:||Brenden J Kugle, Centennial + 1 (303) 721 4619;|
|Secondary Contact:||James M Manzi, CFA, Washington D.C. + 1 (202) 383 2028;|
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