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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

Some Russian regions are not financially capable of maintaining their 2018 FIFA World Cup facilities in the long run and this could become a credit risk, Fitch Ratings says. However, infrastructure, especially roads and airports, constructed for the World Cup should improve economic growth potential and a rise in tourism will result in small

The supply of used light trucks (SUVs/CUVs/Trucks) will continue to swell in 2018 and into 2019, placing downward pressure on residual values (RV) in auto lease asset backed securities (ABS). Auto lease ABS pools have high exposure to these segments, particularly 2016-2018 vintages, given the vehicles' high popularity and strong sales patterns. 

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The recent volatility of the Turkish lira has limited immediate negative impact on the majority of rated non-bank financial institutions (NBFIs). However, the potential effect on asset quality, particularly for leasing companies, could be more pronounced in the medium term as economic confidence is impacted by the currency weakness and rising

Italian home prices have been stable at their trough, 17.1% down from the 2008 peak, for eight quarters in a row, even though the number of property trades has been increasing (8% yoy in 2017). Few exceptions to this long-lasting trough are the north-west, Lazio and the main metropolitan areas such as Milan, where prices are increasing. In southern

Stronger provisions in transaction documentation ahead of LIBOR's discontinuation are an important step to limit the number of legacy structured finance (SF) contracts. However, much still needs to be done before the end of 2021 when forced LIBOR panel participation will end. 

Fitch has reviewed new template language from trade associations and

As the credit cycle enters its late stage, key metrics are stronger than before the start of prior recessions, pointing towards a lower expected default rate in the near term.

"We're seeing better trends when compared to the 2001-2002 and 2008-2009 recessions," said Eric Rosenthal, Senior Director of Leveraged Finance. "The high yield default rate

Australia's 30+ day mortgage arrears increased by 12bp to 1.13% in 1Q18 from the previous quarter, which is consistent with the seasonal increase in spending during the end-of-year holiday period, says Fitch Ratings in a new report. 

Despite the rise, 30+ days arrears remained 9bp lower than in 1Q17, reflecting Australia's improved economic

South Korea's banks are likely to continue enjoying benign credit costs despite heightened uncertainties especially from increasing global trade protectionism and the US Fed's policy rate hike.

Fitch expects the near-term performance of the Korean banks to be steady considering their moderate risk appetite, a tighter regulatory approach and Korea

Underwriting results for Japan's top-four non-life insurers remained strong but overseas weather-related losses (including US hurricanes) affected their results in the financial year ended March 2018 (FYE18).

The three non-life groups (Tokio Marine Group, SOMPO Group and MS&AD Insurance Group) plan to boost the contribution from overseas business