Credit performance for the U.S. securitization markets held firm in 2014 in the face of uncertainty surrounding the regulatory environment and numerous political issues. Flash ahead to next year and Fitch Ratings expects the outlook to remain stable across most sectors. An integral factor around Fitch’s continued stable outlook is long-awaited regulatory clarity.
Global regulators finalized many outstanding regulatory issues last year, chief among them risk retention, Reg AB II and Basel III. With finalized regulations now in place, Fitch expects issuers will spend significant efforts implementing processes to comply with the new regulations throughout next year.