Many segments of U.S. structured finance were forced to play defense to varying degrees during the last few years in light of this past economic recession. Much of 2010 was viewed as a year of 'lessons learned'. But now with the economic recovery slowly underway, we may finally begin to see U.S. structured finance turn the corner towards stability in 2011. Fitch's Rating Outlook for U.S. structured finance is Stable.
The four main structured finance sectors - ABS, CMBS, RMBS and CDOs - have felt the recession's impact to different degrees. The relative performance of those sectors provides clues as to the best practices necessary to limit future performance and rating stability. Fitch believes that the securitization market will employ many of the lessons learned and as a result 2011 will see transactions with improved loan quality from higher credit quality issuers employing less complex structures.