A picture of consistency for several years now, U.S. structured finance is once again set for mostly stable rating performance in 2017. That said, asset performance has peaked in many sectors with modest declines expected over the course of next year.
Last year, we said that investors need to be on the lookout for early warning signs that could signal more significant credit issues among various securitized assets. Fast forward to present day and very few warnings are flashing brightly. With that said, we do see signs of performance deterioration in some sectors though so far it has been limited and within expectations.