U.S. structured finance is set for another stable year in 2016, with performance across most asset classes remaining strong by historical standards. Largely driving this trend is the U.S. economy showing steady improvement and housing market volatility diminishing.
Not surprisingly though, when you drill down further the picture isn’t as rosy. In fact, it’s safe to assume that for most asset classes, the best days are firmly in the rear view mirror. CMBS underwriting quality remains under pressure. Defaults on leveraged loans are on the rise. Auto lenders are becoming increasingly competitive. And new marketplace lenders are looking to disrupt the status quo in the consumer lending space.