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Key macro parameter deviations from baseline are generally tougher in the adverse scenario of the European Banking Authority's (EBA) 2018 stress test of major EU banks than was the case in 2016. The adverse scenario applies an 8.3% deviation of EU GDP from the baseline level in 2020 and fears around a Nordic asset bubble and Brexit lead to deep

U.S. CLOs are not shying away from new loans being issued by the energy sector despite the continued risk of defaults in their legacy holdings, largely to loans issued when oil prices were higher, Fitch Ratings says. CLO exposure to the energy sector could increase on strong energy issuance for the year.

Nearly all of the CLOs monitored by Fitch -

Canadian bank bail-in rules, which come into effect on Sept. 23, finalize a credible resolution framework for Canadian domestic systemically important banks (DSIBs). With the bail-in, total loss absorbing capacity (TLAC) and nonviability contingent capital (NVCC) requirements in place, Canada has completed the main tenets of an orderly resolution

The final five months of 2018 could see only $3 billion of defaults, the lowest amount since 2013.

"Although YTD default volume could potentially reach nearly $25 billion by the end of this month, compared to $12 billion through the first half of 2017, the overwhelming majority of the 2018 forecast defaults have already occurred," said Eric

Secured lenders have seen the value of their collateral deteriorate in recent years. The examples of J.Crew, Claire's, and most recently, PetSmart, draw attention to provisions that enable leakage of potentially valuable collateral. Consequently, lenders have addressed relevant provisions in debt documentation for new transactions.

PetSmart's

China's securitisation issuance slowed down in 1Q18 as a whole, while retail loan and consumer assets remain active in the Credit Asset Securitisation Scheme which includes RMBS, auto-ABS and consumer loan/credit card ABS. Fitch Ratings expects such assets will continue to grow as a proportion of underlying assets in 2018.

RMBS has enjoyed a

Underwriting losses in the U.S. P&C personal lines segment moved higher for the fourth straight year in 2017, though this time another segment drove the increase.

Personal lines are the largest major segment in the P&C industry representing 55% of industry net written premiums. The industry statutory personal lines combined ratio rose to 103.8% in

Fitch Ratings says the 'AAA' ratings of covered bonds' issued by major UK banks are resilient to a deterioration in their environment, notably from Brexit. They benefit from a large cushion against a downgrade of the banks' Issuer Default Ratings (IDR), low maturity mismatches, significant over-collateralisation (OC) buffers and high quality

While national home prices in the U.S. remain strong, areas of overheating are surfacing across the country with Las Vegas topping the list of overvalued housing markets, according to Fitch Ratings in its latest quarterly U.S. RMBS sustainable home price report.

National home prices started 2018 on an up-note with a 7% annualized growth rate in

The 2014 vintage U.S. CLOs have accumulated noticeably high cash balances as compared with other vintages with tighter collateral quality tests posing challenges to reinvestment. Of the 10-top cash-holding 2014 vintages, all were failing their weighted average life (WAL) tests, and all but one were also failing on their weighted average spread (WAS